India Rolls Out Ambitious Vehicle Scrapping Policy to Combat Pollution

New Delhi – The Ministry of Road Transport and Highways has launched a comprehensive Vehicle Scrapping Policy aimed at phasing out older, polluting vehicles and fostering a sustainable transportation ecosystem. This policy is supported by a series of incentives and disincentives and is backed by new regulations under the Motor Vehicles Act, 1988, and Central Motor Vehicle Rules, 1989.

The policy’s implementation framework is outlined in several key notifications:

1. Establishment of Scrapping Facilities: Effective from September 25, 2021, the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 (GSR Notification 653 (E)) mandate the creation of Registered Vehicle Scrapping Facilities (RVSFs).
2. Automated Testing Stations: Recognized and regulated under GSR Notification 652 (E), these stations ensure thorough and automated vehicle fitness assessments, operational from September 25, 2021.
3. Fee Revisions: GSR Notification 714 (E) revises vehicle registration, fitness testing, and certification fees, effective April 1, 2022.
4. Tax Concessions: Under GSR Notification 720 (E), a concession in motor vehicle tax is offered for vehicles registered with a “Certificate of Deposit,” effective April 1, 2022.
5. Mandatory Fitness Testing: GSR Notification 272(E) requires mandatory vehicle fitness assessments at Automated Testing Stations, starting April 1, 2023, for heavy vehicles, and June 1, 2024, for medium and light transport vehicles.
6. Policy Amendments: Amendments to the rules are detailed in GSR Notifications 695(E) (September 13, 2022), 797(E) (October 31, 2022), 29(E) (January 16, 2023), 663(E) (September 12, 2023), 195(E) (March 14, 2024), and 212(E) (March 15, 2024).

To support the rollout, the Ministry is training state and union territory transport officials, as well as traffic police, in the new regulations and technologies related to vehicle scrapping.

Policy Impact

• Operational Facilities: As of now, 60 Registered Vehicle Scrapping Facilities and 75 Automated Testing Stations are operational nationwide.
• State Participation: 21 states and union territories have announced motor vehicle tax concessions for vehicles scrapped at RVSFs, and 18 have waived pending liabilities for scrapped vehicles.
• Vehicle Scrappage: A total of 96,980 vehicles have been scrapped at these facilities as of July 15, 2024.

India’s commitment to the Stockholm Declaration, aiming to reduce road fatalities and injuries by 50% by 2030, underscores the significance of this policy.

Union Minister for Road Transport and Highways, Nitin Gadkari, shared this update in a written reply in the Lok Sabha, highlighting the government’s commitment to reducing vehicular pollution and enhancing road safety.