New Delhi: The much-awaited vehicle scrappage policy that has gone for a Cabinet approval is likely to see stringent registration and fitness norms for pre-2005 manufactured vehicles.
As per estimates, there are more than 2 crore pre-2005 built vehicles that are plying on Indian roads and the move is aimed at discouraging owners of such vehicles in view of about 10 to 25 times higher pollution emission by them under the new emission norms.
Last week, Road Transport and Highways Minister Nitin Gadkari said that he had cleared a Cabinet note on the proposed policy and a decision is expected soon on it.
Indian vehicle market has grown exponentially. If old pollution norms are compared with new emission regulations, pre-2005 vehicles are polluting 10 to 25 times more under the new norms. Even if those old vehicles are maintained properly, they will be polluting more with more emissions and will prove to be a hazard for road safety.
“The proposed policy may see imposition of certain compliances like increased registration charges for private vehicles and increased fitness certification charges for transport vehicles. There may be provisions in the proposed policy to de-incentivise such vehicles,” the sources added.
Given the proposed stringent norms that include fitness certificate requirement every year for transport vehicles, a significant number of such vehicles will certainly opt for vehicle scrapping, they said.
The policy, if finalised, may have provision that on scrapping of old vehicles, buyer of new vehicles could be given concessions by dealers on the basis of certificates of vehicle scrapping, the sources said.
In two years time, the transport ministry is planning to create automated fitness regime in which no manual intervention would be required to check corruption. It will also work on making the fitness regime objective, rational and scientific.
Last week, Gadkari said: “I have signed the file for the Cabinet note on the policy for the scrapping of old vehicles. The finance ministry has approved the note on it.”
He said the note will now be circulated to ministries concerned and the Cabinet was likely to take a call on it soon. He had added that the proposed policy 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 government on July 26 this year had proposed amendments to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.
In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current time-frame 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.