Minister for Road
Transport and Highways, Nitin Gadkari announced the Vehicle Scrapping Policy in
Lok Sabha. The Minister said that older vehicles pollute the environment 10 to
12 times more than fit vehicles. The Ministry of Road Transport and Highways is
introducing the Voluntary Vehicle-Fleet Modernization Program (VVMP) or ‘Vehicle
Scrapping Policy’ which is aimed at creating an ecosystem for phasing out of unfit
and polluting vehicles.
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, formalise the currently informal vehicle scrapping industry
and boost availability of low-cost raw materials for automotive, steel and
The ecosystem is expected to attract additional investments of around Rs
10,000 crore and 35,000 job opportunities. The Ministry shall, in the next few
weeks, publish draft notifications, which shall be in the public domain for a
period of 30 days to solicit comments and views of all involved stakeholders.
The criteria to determine fitness of a vehicle is primarily based on the
Automated Fitness Centres in case of commercial vehicles and non-renewal of registration
in case of private vehicles. This criterion is adapted from international best
practices after a comparative study of standards from various countries like
Germany, UK, USA and Japan. A vehicle failing the fitness test or failing to
get a renewal of its registration certificate will be declared as End-of-Life-Vehicle.
Emission tests, braking, safety equipment, among many other tests which are as
per the Central Motor Vehicle Rules, 1989, will determine vehicle fitness.
What does Scrappage Policy propose?
· In addition, the
registration fees may also be waived for purchase of new vehicle against the
PPP-based Registered scrapping centres
The Ministry of Road Transport and Highways will promote setting up of
Registered Vehicle Scrapping Facility (RVSF) across India and will encourage
public and private participation for opening up of such centres. Efforts are
also being made to set up Integrated Scrapping Facilities across India. Some of
the identified places include Alang in Gujarat, where it is being planned to
develop a highly specialised centre for scrapping, among many other potential
centres, where different scrapping technologies can be synergised together.
With a simplified registration process through single window, the
scrapping facility shall have to comply with environmental and pollution norms
and with all applicable acts of law. It shall be ensured that the scrapping
centres have adequate parking facility, de-pollution equipment for air, water
and sound pollution and adequate facilities for hazardous waste management and
disposal. Similarly, the Ministry shall promote setting up of automated fitness
centres on a PPP model by state government, private sector, automobile
These centres may have adequate space for test-lane, IT servers, parking
and free movement of vehicles. To avoid conflict of interest, operators of
fitness centres shall only provide testing facility and shall not provide repair/sale
of spare services. Appointment for fitness centres may be booked online and
tests reports shall also be generated in an electronic mode.
The tentative timelines for the proposed Scrapping Policy is as follows:
The Ministry of Mines has recently issued
the National Non-Ferrous Metal Scrap Recycling Framework, 2020 covering key
non-ferrous metals like Aluminium, Copper, Zinc and Lead. The framework has
been released with an objective to promote formal and well-organised recycling
ecosystem in the country which is currently highly unorganized with heavy
dependence on imported scrap. Also, it aims to produce high quality scrap for
quality secondary production thus minimizing the dependence on imports and
encourage economic wealth creation, job creation and increased contribution to
GDP through metal recycling.
Welcoming the announcement, Anil Kumar, Managing Director, SEG Automotive,
states, “Voluntary Vehicle Scrappage Policy which aims to reduce vehicular
pollutions, and unsafe vehicles on road. The policy is in the right direction
and we expect the policy to create enhanced demand across the automotive
industry and especially in commercial vehicle segment which has been badly
affected over the last two years. The policy provides a boost to associated
manufacturing and services sector, and also ensures availability of low-cost
raw materials for the manufacturing sector. Overall, the policy creates a
circular economy and will drive growth in the Indian automotive industry.
Meanwhile, many are worried over effect of
the policy of CV industry. CV demands have contracted from long and the policy
launch will help improve the demand. Small owners will suffer due to change as
many old CVs will be scrapped after the notification of the policy.
Associations like ACMA has already raised alarms for the CV industry. However,
ACMA leadership also believed that everyone shall consider wider goal of making
nation pollution free and this is among several steps that the government will
take to ensure that.
Vinkesh Gulati, President, The Federation
of Automobile Dealers Associations (FADA), says, “The Indian automobile
industry has already upgraded to one of the most advanced emission standards.
While the new vehicles will be least polluting, vehicles that are older create
enormous pollution with the least safety standards. They are now eligible for
scrappage thus making roads safer and air cleaner."