- Launch and Purpose: The Ministry of Road Transport and Highways introduced the Voluntary Vehicle Modernization Program (Vehicle Scrapping Policy) to phase out outdated, polluting vehicles. It aims to create a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATS) to modernize India’s vehicle fleet.
- Incentives for Scrapping:
- Vehicle owners receive a Scrappage Certificate after scrapping their old vehicles, which offers discounts on new vehicle purchases. Commercial vehicle manufacturers provide up to a 3% discount, and passenger vehicle manufacturers offer 1.5%. Additional incentives include tax concessions and registration fee waivers.
- Mandatory Fitness Testing:
- Commercial vehicles (CVs) require fitness tests every two years for the first 8 years and annually afterward. Private vehicles (PVs) need a fitness certificate after 15 years. From April 2023, heavy CVs must use ATS for fitness testing, with all other vehicle categories transitioning by June 2024.
- Benefits:
- The policy aims to reduce air pollution by removing high-emission vehicles, stimulate the auto industry, enhance road safety, and promote a circular economy by recycling metals like steel and aluminum from scrapped vehicles.
- Challenges:
- Key challenges include limited scrapping infrastructure, lack of public awareness, dominance of unorganized scrapping sectors, high new vehicle costs, and weak enforcement leading to fake fitness certifications.
- Future Plans:
- The government plans to expand scrapping infrastructure through Public-Private Partnerships (PPP), streamline scrapping procedures, enforce stricter fitness checks, and integrate the management of electric vehicle waste. Public awareness campaigns will be essential for program success.
