India, as per Union Road Transport and Highways Minister Nitin Gadkari’s recent announcement on Monday (18 December), is in need of a widespread network comprising 1,000 vehicle scrapping centers and 400 automated fitness test centers. Gadkari introduced the ‘DigiELV‘ initiative, highlighting the approval of 85 vehicle scrapping facilities by the road ministry across the nation.
Expressing the necessity, he emphasized, “We require 1,000 vehicle scrapping centers and a minimum of 400 automated fitness test centers in the country.”
The ‘DigiELV’ initiative serves as a trading platform specifically designed for the exchange of End of Life Vehicle Certificate of Deposit. This platform facilitates the sale of Certificates of Deposit (CD) owned by individuals who have undergone vehicle scrapping procedures at Registered Vehicle Scrapping Facilities (RVSF).
Gadkari underscored the National Vehicle Scrappage Policy as a mutually beneficial arrangement for all involved stakeholders, envisioning India as a pivotal scrapping hub in South Asia. He emphasized the significance of a circular economy, emphasizing its potential to generate employment opportunities within the country.
Prime Minister Narendra Modi inaugurated the National Vehicle Scrappage Policy in August 2021, projecting its role in phasing out unfit and environmentally harmful vehicles while fostering a circular economy.
Under this new policy framework, the government announced that states and Union Territories (UTs) would offer up to a 25 per cent tax rebate on road tax for vehicles purchased after the scrapping of older vehicles. The vehicle scrappage policy came into effect on April 1, 2022.
Outlined in the Union Budget 2021-22, the policy mandates fitness tests for personal vehicles after 20 years and for commercial vehicles after completing 15 years of operation.
Source economictimes.indiatimes.com
