Centre approves Scrappage policy for Government vehicles

The Ministry of Road Transport & Highways has approved scrappage policy that permits scrapping of vehicles used by government and public sector undertakings that have completed 15 years of service. It will be implemented from April 1, 2022, the government said on Monday.

“The Ministry has approved the policy of deregistration and scrapping of vehicles owned by government department and PSU, which are above 15 years in age,” the Ministry of Road Transport and Highways said in a statement. “It is to be notified, and will come into effect from 1st April, 2022,” read the statement.

According to the Ministry, the policy will benefit the auto sector and reduce the cost of procuring expensive metals such as copper.

On July 26, 2019, the government had proposed amendments to motor vehicle norms to allow the scrapping of vehicles older than 15 years with a view to encourage adoption of electrical vehicles.

“We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy,” Gadkari had said on January 25.

Last year, Union Minister for Transport Nitin Gadkari had announced that the government would implement the scrappage policy as it was committed to protecting  the environment and preventing pollution. He evaluated that the scrappage policy will help the automobile industry recover from the crisis created by the COVID-19 pandemic.

In July 2020, the government had directed to bring laws to scrap 15-year-old vehicles based on non-renewable energy resources. This was part of the government’s move to move to promote electric vehicles.

The Centre expects that the introduction of the new policy and the law will help make India a new automobile hub. The government also hopes that it will reduce the price of vehicles and increase the revenue generated by the automobile industry by Rs 4.5 lakh crore including 1.45 lakh crore in export alone.