India Unveils Old Vehicle Scrapping Policy & Rules for Shredders
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India Unveils Old Vehicle Scrapping Policy & Rules for Shredders

India’s Minister for Road Transport and Highways Mr Nitin Gadkari has announced the Vehicle Scrapping Policy. The objectives of the policy are to

India’s Minister for Road Transport and Highways Mr Nitin Gadkari has announced the Vehicle Scrapping Policy. The objectives of the policy are to reduce population of old and defective vehicles, achieve reduction in vehicular air pollutants to fulfil India’s climate commitments, improve road and vehicular safety, achieve better fuel efficiency, formalize the currently informal vehicle scrapping industry and boost availability of low-cost raw materials for automotive, steel and electronics industry. He said that “In the interest of a clean environment and rider and pedestrian safety, MoRTH is introducing the Voluntary Vehicle Fleet Modernization Program or Vehicle Scrapping Policy which is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles.”

The Policy proposes the following

  1. It is proposed that commercial vehicles be de-registered after 15 years in case of failure to get the fitness certificate. As a disincentive measure, increased fees for fitness certificate and fitness test may be applicable for commercial vehicles 15 year onwards from the date of initial registration.

  1. It is proposed that Private Vehicles be de-registered after 20 years if found unfit or in case of a failure to renew registration certificate. As a disincentive measure, increased re-registration fees will be applicable for private vehicles 15 year onwards from the date of initial registration.

  1. It is being proposed that all vehicles of the Central Government, State Government, Municipal Corporation, Panchayats, State Transport Undertakings, Public Sector Undertakings and autonomous bodies with the Union and State Governments may be de-registered and scrapped after 15 years from the date of registration.

The scheme shall provide strong incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres, which shall provide the owners with a scrapping certificate. Some of these incentives include:

  1. Scrap Value for the old vehicle given by the scrapping centre, which is approximately 4-6% of ex-showroom price of a new vehicle.

  2. The state governments may be advised to offer a road- tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles

  3. The vehicle manufacturers are also advised for providing a discount of 5% on purchase of new vehicle against the scrapping certificate.

  4. In addition, the registration fees may also be waived for purchase of new vehicle against the scrapping certificate.

MoRTH will also promote setting up of Registered Vehicle Scrapping Facility across India and will encourage public and private participation for opening up of such centres, for which MoRTH has notified draft rules. The draft rules lay down the procedure for setting up, authorization and operation of RVSF. Key features are:

  1. These RVSFs shall be provided access to the VAHAN database and shall be authorized to make entries regarding scrapping of the vehicle & issuance of Scrapping Certificate.

  1. Other access to NCRB & police database will also be provided for verification of stolen vehicle or vehicle involved in criminal activity, before scrapping a vehicle.

  1. The rules specify the technical requirements and procedure to be followed by any legal entity for setting up RVSF.

  1. The Government of India will develop a portal for single window clearance, on which the applicant will apply with documents and fee. State/UT governments would clear the proposal in a time-bound manner, that is, 60 days.

  1. The application process is proposed to be made seamless, transparent and time-bound for registration, inspection and audit of RVSF.

  1. The RVSF must take cyber security certifications for safe access to VAHAN database. The registration of an RVSF shall be valid for an initial period of 10 years, and renewable for 10 years at a time.

  1. Besides the requirement for having certified equipment for de-polluting, de-risking and dismantling End of Life Vehicle, the RVSF will have to comply with relevant health and safety legislation/regulation and environmental norms laid down by MoEF&CC and CPCB/SPCB for such operations.

  1. In case the RVSF does not have adequate capability for recycling of hazardous waste (like e-waste, batteries, or for recovery of rare earth metals, etc.), then such materials can be sold to duly authorized recyclers.

  1. The RVSF, after verifying the original documents from the owner or representative and records of the vehicles, issues the ‘Certificate of Deposit’, which can be used to avail incentives and benefits for purchase of a new vehicle.

  1. The RVSF shall keep safe custody of cut piece of Chassis Number for a period of 6 months from the date of issue of ‘Certificate of Vehicle Scrapping’ and maintain a copy of all documents for record and examination during audit.

Objections and suggestions to these draft rules have been invited within 30 days’ time from the date of publication of these draft rules.

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