Fee waiver, road tax discount key features of Centre’s draft scrappage policy

Motorists and freight operators who purchase new vehicles after scrapping their old ones may be entitled to a waiver of the registration fee and a discount on the road tax. The incentives have been proposed by the ministry of road transport and highways (MoRTH) in its long-pending draft vehicle scrappage policy.

Features of the draft policy, one of whose caveats is that the vehicles that are sent to the scrapyard must be dismantled in an environment friendly way, were discussed by the ministry at the 40th meeting of the transport development council chaired by Union transport minister Nitin Gadkari on Tuesday.

The policy is aimed at taking off the roads old, fuel-guzzling vehicles whose roadworthiness may be in doubt and replacing them with new ones in a potential boost to automobile sales and their manufacturers. Gadkari said last year that it would also help recycle key raw material made available by scrapping vehicles, such as steel, aluminium and plastic, thereby lowering automobile prices.

“This ministry has formulated a draft policy for scrapping of old, unfit vehicles. The objective behind the scrapping policy is to phase out older, unfit vehicles and replace them with safe, fuel efficient, environment- friendly, new- generation vehicles. Commercial vehicles cause higher levels of pollution due to higher mileage covered by them. Therefore, efforts are focused more on these vehicles .The Voluntary Vehicle Scrapping Policy is driven through a combination of incentives and disincentives, “ the minutes of Tuesday meeting, reviewed by HT, read. Proposed disincentives include raising the registration fee for renewal after a vehicle completes 15 years, a higher fee for fitness certificates and fitness testing of vehicle aged above 15 years and restrictions by states on the entry of such vehicles into city limits. A higher road tax is proposed for vehicles older than 15 years.