New Delhi | Jagran Auto Desk: In a bid to encourage people to discard their old vehicles that cause more pollution, have higher maintenance and consume more fuel the Ministry of Road Transport and Highways (MoRTH) on Tuesday (October 5) issued a list of incentives and disincentives pertaining to the Vehicle Scrapping Policy.

Here is a look at all you need to know about the MoRTH's incentives and disincentives. First, let us begin with understanding what the Vehicle Scrapping Policy is all about.

What is Vehicle Scrapping Policy?

As the name suggests, the Vehicle Scrapping Policy is meant to give directives on phasing out old and unfit vehicles. As per motor vehicle laws in the country, a passenger vehicle has a life of 15 years and commercial vehicles have a lifespan of a decade. Vehicles plying on the roads beyond these durations are considered to pollute the environment at a greater pace compared to newer cars. The policy helps individuals dump their old vehicles systematically and even offer incentives.

The policy was introduced on February 1 by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2021-22. She announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centers after 20 years while the commercial vehicles will undergo the test after 15 years.

What's the purpose of the incentives and disincentives?

The incentives and disincentives combined are aimed at encouraging the vehicle owners to discard their old and polluting vehicles having higher maintenance and fuel consumption costs, read a press statement released by the ministry.

What are the incentives?

There will be a waiver of the fee for the issue of the certificate of registration for a new vehicle, purchased against the authority of the Certificate of Deposit (CoD) issued by a Registered Vehicle Scrapping Facility for a vehicle being scrapped.

What are disincentives?

1. Increase in the fee for conducting fitness tests and renewal of fitness certificates for motor vehicles more than 15 years old.

2. Increase in the fitness certification fee for transport vehicles more than 15 years old.

3. Increase in the renewal of registration fee for personal vehicles (non-transport vehicles) more than 15 years old.

What is the process? 

Meanwhile, the MoRTH will set up an expert group to advise it on formulating strategies and policies regarding road transport, including the automotive sector. The expert advisory group (EAG) will consist of five members. It will advise the ministry on issues like strategizing policy on the use of alternative fuel, hydrogen fuel and biofuel, electric vehicles, vehicle emission standards, and driverless vehicles. It will also advise the ministry on vehicle emission standards, central motor rules and regulations, design and safety of vehicles, and formulation of rules for upgrades as per international standards.

Posted By: Sugandha Jha