Ministry of Road Transport & Highways
azadi ka amrit mahotsav

Vehicle Scrappage Policy

Posted On: 28 NOV 2024 5:15PM by PIB Delhi

As per information received from Government of NCT of Delhi (GNCTD), the crackdown on end-of-life vehicles (ELVs) was resumed by Transport Department, GNCTD from 11.10.2024. Since then, 2,445 vehicles have been impounded by the enforcement teams of the Transport Department, GNCTD.

(i) The Ministry of Steel, vide OM dated 23.01.2023 has circulated the formula to all the Ministries/ Departments of Govt of India, for determination of Reserve Price of Government Vehicles and Service Charges to be levied by MSTC for auction of such vehicles. The same has been circulated to all States/UTs.

(ii) All RVSFs set up in accordance with Government of India notification GSR 653 (E) dated 23.09.2021 (and subsequent amendments) are private entities. There is no intervention by the Government in determination of fair price of private vehicles to be scrapped. The price of these vehicles is decided by the market forces as per the condition of the vehicle to be scrapped.

The following incentives are provided to citizens for scrapping of their vehicles:-

    1. GSR Notification 714(E) dated 04.10.2021 provides that, in case the vehicle is registered on submission of ‘Certificate of Deposit’, the fee for issue of certificate of registration shall not be levied.
    1. GSR Notification 720(E) dated 05.10.2021 provides for concession in the motor vehicle tax (upto twenty five per cent, in case of non-transport vehicles and upto fifteen per cent, in case of transport vehicles) for the vehicle registered against submission of "Certificate of Deposit". Provided that this concession shall be available upto eight years, in case of transport vehicles, and upto fifteen years, in case of non-transport vehicles.

As per Government of India notification GSR 653 (E) dated 23.09.2021 (and subsequent amendments), removal or re-cycling or disposal of hazardous parts of the scrapped vehicle is to be done as per CPCB guidelines for Environmentally Sound Management of End- of-Life Vehicles and AIS-129. The said guidelines outline the procedures and infrastructure facilities required for de-pollution & dismantling of ELVs for further recovery of metals and other materials and requirements under environmental regulations.

(i)     The Government of India has notified the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme with an outlay of ₹10,900 crore, to be implemented from 1st October 2024 to 31st March 2026, to incentivise faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country.

  1. The Government of India has notified the norms regarding retrofitment of CNG kit (replacement of In-use BS VI Diesel engine by new CNG engine) vide G.S.R. 625(E) dated 11.08.2022.
  2. The Government of India has also notified G.S.R. 167(E) dated 01.03.2019 for retro-fitment of hybrid electric system or electric kit to vehicles and their compliance standards shall be as per AIS 123.

The Government of India has formulated the Vehicle Scrapping Policy that includes a system of incentives/disincentives for creation of an ecosystem to phase out older, unfit polluting vehicles. In order to enforce provisions of the policy, rules have been notified under the framework of the Motor Vehicles Act, 1988 and Central Motor Vehicle Rules, 1989. The respective State/UT Governments are responsible for implementation and enforcement of the policy.

Section 41(7) of the Motor Vehicles Act, 1988 provides for validity of certificate of registration in respect of a motor vehicle. However, the Hon'ble Supreme Court of India in WP No. 13029/1985 (MC Mehta vs Union of India), vide order dated 29.10.2018, has directed the Transport Departments of National Capital Region (NCR) that all diesel vehicles more than 10 years old and petrol vehicles more than 15 years old shall not ply in terms of order of NGT order dated 07.04.2015.

This information was given by the The Union Minister of Road Transport & Highways, Shri Nitin Gadkari in a written reply in Lok Sabha today.

DS/AK

 

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(Release ID: 2078845)
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