The India Road Transport and Highways Ministry recently published a notification that from 1st April, all vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped. Although the rule shall not apply to the special purpose vehicles (armoured and other specialised vehicles) used for operational purposes for the defence of the country and for the maintenance of law and order and internal security.
According to Indiatimes, after the expiry of the fifteen years from the date of the initial registration of the vehicle, the disposal of such vehicles should be ensured through the Registered Vehicle Scrapping Facility set up in accordance with the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after 15 years.
Under the new policy, which is effective from April 1, 2022, the states and Union Territories will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.
Last year, Union minister Nitin Gadkari had said his aim is to develop at least one automobile scrapping facility within 150 kilometres from each city centre while asserting that the country has the potential to become a vehicle scrapping hub of the entire South Asian region.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in 2021 and said it will help phase out unfit and polluting vehicles and also promote a circular economy.