What is a vehicle scrapage policy: Finance Minister Nirmala Sitharaman also announced the voluntary vehicle scraping policy in the country when the Union Budget 2021 was presented yesterday. Union Road Transport and Highways Minister Nitin Gadkari said the scrapage policy would be implemented in the next 15 days. Many questions are now on the minds of the people about the new scraping policy being implemented across the country. Today we will inform you in detail about every information related to this new policy-
What is the new scraping procedure:
In fact, it is a voluntary vehicle scraping procedure in which old and unsuitable vehicles are phased out and phased out. In July last year, the Center proposed to allow amendments in motor vehicle regulations for vehicles older than 15 years. In addition, in the draft notification, it was stated that the renewal of the fitness certificate of the vehicles should be extended to 6 months instead of every year.
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What is the rule:
According to this scraping procedure, vehicles running in the country are required to undergo a fitness test as per the schedule. According to this, personal vehicles are required to undergo a fitness test after 20 years and commercial vehicles after 15 years. The fitness test of older vehicles will be done at automated centers, which will soon be built by the government. These centers will have a vehicle fitness test where they will be given a certificate.
What is a fitness test:
According to the new policy guidelines, each vehicle must undergo this fitness test after a specified time (15 or 20 years). After passing this fitness test, vehicles will be allowed to drive on the road. According to reports, the fitness test can cost up to Rs 40,000, including road tax and green tax. All vehicle owners will inevitably need to renew your personal vehicle and commercial vehicle registration after a period of 15 years or 20 years. This fitness certificate is only valid for 5 years, after which you will have to bear the same cost again to get the fitness certificate.
What is Green Tax:
The government said last month that it plans to impose a green tax on old polluting vehicles soon to protect the environment and curb pollution. Alternative fuels such as hybrid, electric, CNG, ethanol and LPG are exempt. The money collected through the green tax will be used to combat pollution. Under the scheme, a green tax of 10 to 25 per cent of the road tax can be levied on transport vehicles older than eight years at the time of fitness certificate renewal. However, the proposal was sent to the states for consultation after it was approved by the ministry.
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What happens when a fitness test fails:
According to these guidelines, no vehicle will be allowed to drive on the road without passing the fitness test. Driving vehicles that do not pass this test is considered illegal. If a vehicle is not tested for fitness, it is considered unregistered. The fitness test cannot be stopped while in the mandatory registration process and if the vehicle fails the test, the said vehicle will not be registered. However, if the vehicle fails the fitness test three times, the vehicle owner has no choice but to send it in scrap.
Claim of 50,000 job creation:
The government has said that sales of new vehicles in the country will increase after the implementation of this new scraping policy. With this, the country’s automobile business will grow from 4.5 lakh crore to 6 lakh crore. Rs 10,000 crore will be invested from this policy and the government is claiming the creation of about 50,000 new jobs.
Pollution is controlled:
According to a report, about 10 million vehicles in the country are currently obsolete and causing more pollution. These older vehicles cause about 10 to 12 times more pollution. Removing these vehicles from the roads would reduce pollution by 25 to 30 percent. According to an IIT study, 70 percent of vehicles cause pollution and older vehicles cause more air pollution, so it is advisable to send them in a scrub.
Supply of raw materials at low prices:
Another advantage of this is that we get rubber, aluminum and steel at a lower price than abroad. So far all these items have been procured from abroad. Union Minister Nitin Gadkari said that when old vehicles are sent to scrub dealers, raw material can be obtained from there and new vehicles can be built from there, thereby reducing the price of new vehicles by about 30 per cent. With the arrival of new vehicles in the market, jobs will also be created and raw materials will also be supplied at a lower cost.
Incentive is given when sending the car in scrap:
With this policy coming into effect from April 1, 2022, the government is making a provision to give incentives, i.e. incentives. However, it depends on the age and condition of the vehicles, how much incentive is given to any vehicle. Currently, the government is considering a vehicle incentive, which will be announced by the ministry soon.
It is mandatory to send the vehicle in scrap:
If you think your vehicles will be completely useless after 15 or 20 years it is not at all. As we mentioned above, this approach is currently voluntary. This means that it’s up to you whether or not to send your vehicle in scrap, but for this you need to get the vehicle’s fitness certificate.
Note: Many details regarding this policy have not yet been revealed, about which the Ministry of Roads and Transport will soon issue new guidelines. As Nitin Gadkari has made it clear that the policy will be implemented in the next few weeks, new updates on it are expected to be revealed soon. The auto sector has been buzzing about the government’s new scraping policy, which has been welcomed by many automakers.