Prime Minister Narendra Modi has launched the Voluntary Vehicle Fleet Modernisation Programme (commonly known as the Vehicle Scrappage Policy). The launch announcement was made during his virtual address at the Investor Summit in Gujarat. The new policy will help in phasing out the unfit and polluting vehicles from the road.
In a series of tweets, the Prime Minister said: –
The Summit was organized to invite investment for setting up vehicle scrapping infrastructure under the Vehicle Scrapping Policy. The Prime Minister said that the new scrapping policy is an important link in the circular economy and the waste to wealth campaign. It will bring in investments of around Rs 10,000 crore and insisted that Alang in Gujarat could become a hub for vehicle scrapping.
Nitin Gadkari, Minister for Road Transport and Highways, was also present at the summit. According to him, the scrappage policy will reduce raw material costs by around 40 percent. He also stated that testing centers will be set up in all districts across the country using the public-private partnership (PPP) model. A total of 26 inspection & certificate centers (one each in 26 States/UTs) have been sanctioned by the Ministry of Road Transport & Highways (MoRTH). Click here to see the list of such centers.
For those who aren't aware, under the new vehicle scrappage policy, private vehicles older than 20 years and commercial vehicles older than 15 years will be required to undergo compulsory fitness tests from April 2023 (June 2024 for private vehicles) in automated fitness centers. And if they are found unfit, they will be labelled as ''End of Life Vehicles (EOLV)''. Such vehicles will not be allowed to ply on roads, and the owners will have to phase them out. In return, they will get a scrap value and a scrapping certificate, after which they will be eligible to avail various incentives proposed under this scheme, including a waiver of road tax on the next vehicle. However, it is important to note that the scrappage policy will not be applicable to vintage cars, and the ministry has proposed new rules for them.
