• Source:JND
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Vehicle Scrappage Policy: Union Road Transport and Highways Minister Nitin Gadkari on Tuesday announced that automobile manufacturers have agreed to offer lucrative discounts to people who wish to scrap their old vehicles while buying new ones. A valid Certificate of Deposit has to be produced to avail such benefits.

The decision was made during a meeting with CEOs from the Society of Indian Automobile Manufacturers (SIAM). The meeting, chaired by Gadkari, also discussed key issues faced by the auto sector.

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“Chaired a highly productive session of the SIAM CEO’s Delegation Meeting at Bharat Mandapam today, where we addressed various critical issues facing the automobile industry. I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads,” Gadkari posted on X.

Gadkari also expressed gratitude towards automobile manufacturers who became a part of this initiative. “Congratulations and gratitude to the automobile manufacturers who have taken the initiative to participate in our Vehicle Fleet Modernisation Programme. I trust that others will soon follow their lead and join us in this important endeavor,” he added.

Extra discount on scrapping old vehicles:

Gadkari said auto majors had agreed to offer a 1.5-3.5 per cent discount if buyers scrap their old vehicles. A valid Certificate of Deposit has to be submitted to avail benefits.

Process to be followed while scrapping old vehicles:

The vehicle owner must notify the relevant RTO by submitting a letter informing them about the scrapping of their car. Along with this, an affidavit must be provided, confirming that the vehicle is free from any bank loans, insurance claims, outstanding traffic challans, court cases, or reports of theft.

The original vehicle documents must be surrendered, and the VIN plate should be removed after the car is scrapped. The RTO also requires a confirmation document on the official letterhead of the scrap yard or facility, which must include the complete address and pictures of the scrapped vehicle.

National Vehicle Scrappage Policy 2021:

Prime Minister Narendra Modi in August 2021 launched the National Vehicle Scrappage Policy with an aim to phase out unfit vehicles and promote circular economy. The policy came into effect on July 1, 2021.

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The Centre announced that states and Union Territories (UTs) will offer up to a 25 per cent rebate on road tax for vehicles purchased after scrapping old ones. Introduced in the Union Budget 2021-22, the policy mandates fitness tests for commercial vehicles after 15 years and for personal vehicles after 20 years.