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India Launches Vehicle Modernisation Program
Context:
The Ministry of Road Transport and Highways (MoRTH) has unveiled the Voluntary Vehicle Modernisation Program, also known as the Vehicle Scrapping Policy, to accelerate the phasing out of unfit, polluting vehicles across India.
More on News:
- Establish a robust ecosystem involving Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs) to facilitate the scrapping and replacement of older vehicles with newer, cleaner models.
- The program aims to reduce emissions, improve air quality, and advance towards a more sustainable and eco-friendly transportation system.
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Current Infrastructure
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Objectives:
- Reduce pollution by scrapping ~1 Cr vehicles without valid fitness and registration.
- Improve road, passenger and vehicular safety.
- Improve fuel efficiency and reduce maintenance costs for vehicle owners.
- Boost auto sector sales and generate employment.
- Formalise the currently informal vehicle scrappage industry.
- Boost availability of low-cost raw materials for automotive, steel and electronics industries.
Key Highlights:
- The Vehicle Scrapping Policy is designed to ensure safer, cleaner, and more efficient vehicles on Indian roads.
- In a move to incentivise the scrapping of end-of-life (ELV) vehicles, several vehicle manufacturers have agreed to offer substantial discounts against a Certificate of Deposit (Scrappage Certificate):
- End-of-life vehicles (ELVs) are motor vehicles that are deemed waste.
Additional Benefits:
- These Original Equipment Manufacturers (OEM) discounts are supplementary to the scrap value provided by RVSFs to vehicle owners.
- Government Incentives: Motor Vehicle Tax Concession, Waiver of Registration Certificate Fees, Liability Waivers.