Haryana Government Approves Vehicle Scrappage Policy Draft

The state of Haryana is set to implement its own vehicle scrappage policy soon. The state cabinet recently approved the policy draft for the scrappage of end-of-life vehicles along with rebates that could be offered to the vehicle owners.

The five-year policy will follow in line with the central government’s vehicle scrappage policy encouraging the voluntary scrappage of diesel vehicles that are 10 years or older and petrol vehicles that are 15 years or older. The state government is also set to incentivise the scrappage of old vehicles with an official statement from the government saying that it would also use dis-incentives to further push for scrappage of old and unfit vehicles.

Voluntary scrappage policy will incentivise the scrapping of 10 year old diesel and 15 year old petrol vehicles. (representational image)

The incentives available to vehicle owners under the scheme will include a rebate on motor vehicle tax up to 10 per cent or 50 per cent of scrapped vehicle value as per the certificate of deposit – whichever is lower. Owners will also be offered a rebate of 25 per cent on new vehicle registration.

Owners continuing to use their vehicles over the age limit will be charged a vehicle fitness fee as per the Central Motor Vehicle Rules along with environment compensation and road risk charged at a rate of Rs 1 per cubic capacity of the vehicle. Furthermore services such as issuance of NOC, transfer etc would be chargeable at Rs 100 over the standard price.

The state government however has said that it will be encouraging the set-up of Registered Vehicle Scrappage facilities purely through private investment.