New Vehicle Scrappage Policy in India

• The policy comes into effect when a vehicle's registration is complete.

• A passenger vehicle has a life of 15 years and a commercial vehicle has a life of 10 years.

• After that they start polluting the environment at a greater intensity.

• All vehicles over and above the time limit will

have to undergo mandatory fitness test.

• If a vehicles fails fitness test, they will not get renewal certificate and won't be able to run on road.

• These vehicles will be sent to scrapyards where they will be dismantled and the steel in the car body is crushed and recycled.

Currently, such vehicles are either polluting the environment or are lying at road sides.

• If vehicles pass the fitness test, they will have to undergo fitness test after every 5 years again to show their road worthiness.

Why is it a good policy for the nation?

• If a vehicle is scrapped at the end of its lifecycle it will stop running on roads and reduce air pollution.

• Scrapping older vehicles will generate space for new vehicles, which will help the sales in the otherwise stagnant Indian auto industry.

What benefit will you get from scrapping your vehicle?

• If the owner chooses to scrap the vehicle, a scrap value of 4-6% of the ex-showroom price of vehicle will be given to the owner.

• A rebate of up to 25% will be given in Road Tax.

• Vehicle manufacturers will be advised to give 5% discount on new vehicles against a scrapping certificate