The Ministry of Road Transport and Highways has officially launched the Voluntary Vehicle Modernization Program, popularly known as the Vehicle Scrapping Policy. This groundbreaking initiative aims to phase out unfit, polluting vehicles across the nation, promoting a cleaner and more efficient transportation system. The program will establish a robust ecosystem through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs) strategically located across the country.
Currently, over 60 RVSFs are operational in 17 states and union territories, along with more than 75 ATSs in 12 states. The program is poised for expansion, with additional facilities in the pipeline.
Union Minister for Road Transport & Highways, Nitin Gadkari, recently engaged in a detailed discussion with CEOs from the Society of Indian Automobile Manufacturers (SIAM) to advance the initiative. The meeting, attended by Ministers of State Harsh Malhotra and Ajay Tamta, underscored the government’s commitment to replacing outdated, polluting vehicles with newer, more environmentally friendly models.
In a show of support for fleet modernization and a circular economy, several major commercial and passenger vehicle manufacturers have agreed to offer significant discounts for a limited period. Commercial vehicle manufacturers, including Tata Motors, Ashok Leyland, Mahindra & Mahindra, and others, will provide discounts equivalent to 3% of the ex-showroom price for cargo vehicles over 3.5 tonnes GVW that are scrapped within six months. For smaller cargo vehicles, the discount will be 1.5%.
Passenger vehicle manufacturers, including Maruti Suzuki, Hyundai, Toyota, and others, are offering a 1.5% discount or Rs 20,000, whichever is less, on new cars purchased against a scrapped vehicle. Mercedes Benz India has gone a step further, offering a flat discount of Rs 25,000, which can be combined with existing offers.
These discounts are in addition to the scrap value provided by RVSFs and other government incentives, such as motor vehicle tax concessions and fee waivers for the issuance of new registration certificates. The policy is expected to encourage the scrapping of end-of-life vehicles, ensuring that safer, cleaner, and more efficient vehicles dominate Indian roads in the coming years.
This comprehensive approach is set to revolutionize the Indian automotive landscape, aligning with global sustainability goals and promoting a greener future for the country.
