Everything You Need to Know About India's Vehicle Scrappage Policy

The policy aims at eradicating the environment-damaging old cars that have surpassed their shelf life of 10-15 years. This policy is widely accepted throughout the country. It is a policy for sustainable economic development while pushing for a greener economy.

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What is the Vehicle Scrappage Policy?

The vehicle scrappage policy will help phase out old and unfit vehicles that damage the environment. The policy goes into effect as soon as the vehicle's registration period ends. Once the registration period ends, the vehicle will then have to undergo a mandatory fitness test.

The motor vehicle laws of India state that the shelf life for commercial vehicles will be 10 years, while a passenger vehicle's shelf life will be 15 years. The vehicles that cross the stipulated duration are considered a polluting hazard and are prone to spreading more pollution than the newer cars.

These cars also have older technology, making them outdated and unsafe for the roads. Older cars will also consume more fuel when compared to newer vehicles.

The policy aims at providing incentives and helping old car owners to scrap their old cars systematically.

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Fitness Test

An old vehicle has to undergo several tests to gage whether it is fit to be driven on the roads. One of the factors it will be judged on is whether the quality of the vehicle is good, and the other factor will be how much impact it has on the environment.

The tests will include engine performance, brakes, and a lot more. Once the vehicle passes these tests, it will only be cleared as fit or unfit if the vehicle demonstrates the opposite.

If the car passes the tests, it will have to undergo these tests every 5 years. A fitness test and a subsequent fitness certificate will be necessary to renew their registration after 10 or 15 years. The fitness certificate will be valid for 5 years at a time for private vehicles.

Benefits for Old Car Owners

For old car owners, the government provides several incentives and offers. An old car owner who decides to scrap their vehicle will be compensated with a scrap value equal to 4–6 percent of the ex-showroom price of the new vehicle they will purchase.

Old car owners who decide to buy a new vehicle after scrapping their old one will have to pay zero registration fees on their new vehicle once they show their certificate of deposit.

The state governments will also offer concessions on motor vehicle taxes. These reductions range from up to 25 percent for non-transportation vehicles to 15 percent for transport vehicles.

Now that's what we call a good policy! It is a welcome move for a better planet and automotive industry.

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