The Ministry of Road Transport and Highways (MoRTH) is planning to formulate a new standardised ‘end of life’ policy for scrapping of old vehicles in India.
According to the proposal, buyers can avail a 50 per cent rebate on excise duty on purchase of new vehicles in exchange of their old vehicles. The regulation will also list out what kind of vehicles are eligible to be scrapped. Automobiles that are fully operational and BS-III norms compliant will be exempted while vehicles which are found to be polluting or are non-operational will go through the city-specific/state-specific regulations and be sent for scrapping. The proposal also includes plans to set up five scrapping centres with a capacity of recycling up to five lakh vehicles. The first centre will be set up in Delhi within two years.
Another aspect that the new policy will address is the excessive paperwork that is required for de-registering a vehicle. The Ministry plans to make the process simpler by eliminating the need for car owners to “run from pillar to post while visiting road transport offices,” according to an Ministry official.
The proposal also includes provisions for offering incentives for discarding old automobiles – the Ministry has proposed tax exemptions of up to Rs 30,000 for passenger vehicles and up to Rs 1.5 lakh for commercial vehicles.