Announcing the vehicle scrapping policy, road transport minister Nitin Gadkari said more than 20 year old personal vehicles will be de-registered from June1, 2024, if they fail in an automated fitness test or their registration certificate is not renewed. Similarly,15 year-plus commercial vehicles will be deregistered from April 1, 2023.
Further, the government will advance roll out of the mandatory obtaining of fitness test certificates for personal vehicles from the automated testing centres in 10 most polluting cities. The initiatives are part of a roadmap to replace polluting vehicles with technologically advanced and greener ones across the country.
Sources said the timeline for mandatory fitness test certificates for personal vehicles in the more polluting cities would be advanced by 6-8 months for personal vehicles compared to the timeframe set for the entire country.
Gadkari told both Houses that a number of incentives will be offered to people for retiring their old vehicles. He also told reporters that his ministry has suggested some relief in GST for buying new vehicles in lieu of scrapping old vehicles.
“We have suggested to the finance ministry take it up with the GST Council to give some incentive for such buyers...I am also issuing an advisory urging vehicle manufacturers to offer a 5% discount in the price of new vehicles,” the minister said. The minister said the states are also being advised to give discounts on the road tax and they won’t lose by doing so as the GST from the sale of new vehicles will be much higher. He added this will increase revenue of both state and Centre. “It is a win-win for all,” Gadkari claimed.
According to official estimates, there are 51 lakh light motor vehicles in the country, which are over 20 years old and 34 lakh light motor vehicles, which are over 15 years old. Gadkari said the turnover from the scrapping industry is expected to be to the tune of Rs 7.2 lakh crore and this policy will funnel investments worth Rs 10,000 crore and create 35,000 jobs.