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Cabinet to soon decide on proposed vehicle scrapping policy: Nitin Gadkari
Sep-20-2019

The Road Transport and Highways Minister Nitin Gadkari has said that the Cabinet will soon decide on the proposed vehicle scrapping policy. He has cleared a cabinet note on the proposed policy and the finance ministry has also approved the same. He said the Cabinet note will now be circulated to ministries concerned and the Cabinet was likely to take a call on it soon. He said the proposed policy for discarding old vehicles once approved will be applicable on all vehicles including two and three-wheelers.

Earlier, the policy had gone for a fresh round of consultation with the stakeholders on the direction of the PMO. The minister had earlier said that once the policy is approved India could emerge as a hub for automobile manufacturing as key raw material available from scrapping like steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by 20-30 percent. In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road. A committee of secretaries (CoS) recommended to the ministry redesigning of the scheme for greater participation of states with partial support from the Centre. The CoS had suggested that the scheme may dovetail a calibrated and phased regulatory approach for capping the life of vehicles together with stricter implementation of emission norms and accordingly a revised consultation paper got in-principle nod at PMO.

In a bid to spur adoption of electrical vehicles, the government on July 26 this year had proposed amendments to Motor vehicle norms to allow scrapping of vehicles older than 15 years. In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current timeframe of one year. The notification also provided that the newly purchased motor vehicles will be exempted for the payment of fees for registration certificate and assignment of new registration mark, if the purchaser produces scrapping certificate of the previously owned vehicle of the same category issued by the authorised scrapping centre/agency. 

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