Lok Sabha Question No. 2889 (UNSTARRED), answered on 2024-08-08
Subject: Vehicle Scrappage Policy, 2021
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Shri Gurmeet Singh Meet Hayer

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

LOK SABHA UNSTARRED QUESTION NO. 2889 ANSWERED ON 8 th  AUGUST, 2024

## VEHICLE SCRAPPAGE POLICY, 2021

2889. SHRI GURMEET SINGH MEET HAYER:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a) the details of measures taken to mitigate the financial burden on lower-income individuals and small businesses faced due to Vehicle Scrappage Policy, 2021;
- (b) the details of specific incentives to vehicle owners in transitioning to new vehicles by the Government;
- (c) the details of the steps taken to prevent pollution by disposal of scrapped  vehicles  and  to  balance  the  resource  consumption  and energy use in manufacturing new vehicles;
- (d) the details of infrastructure developments planned for scrapping centres  and  mechanism  for  regulatory  compliance  to  be  enforced uniformly;
- (e)  the  steps  taken  to  address  the  impact  on  the  second-hand vehicle market and support to affected informal sector workers; and
- (f)  the  mechanisms  to  monitor  the  policy's  effectiveness  and aligning with India's long-term environmental and economic objectives?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

## (SHRI NITIN JAIRAM GADKARI)

- (a) and (b) (i) In order to incentivize the vehicle owners to scrap old, unfit and polluting (End of Life vehicles) vehicles, under the Vehicle Scrapping Policy, MoRTH has issued GSR 720 (E) dated 5 th  October 2021 to provide concession in the Motor Vehicle Tax of up to 25% in case of non-transport vehicles and up to 15% in case of transport vehicles which are purchased against the 'Certificate of Deposit'.
- (ii)  GSR  714(E)  dated  04.10.2021  provides  that,  in  case  the vehicle is registered against submission of 'Certificate of Deposit', the fee for issue of certificate of registration shall not be levied.
- (c)  and  (d)  (i) The  Motor  Vehicles  (Registration  and  Functions  of Vehicle  Scrapping  Facility)  Rules,  2021  issued  vide  GSR  653(E) dated 23.09.2021 (as amended from time to time) provides the rules
- to establish Registered Vehicle Scrapping Facilities (RVSFs).
- (ii)  Sub-rule  (xix)  of  rule  10  of  the  aforementioned  rules provides  that  the  RVSF  shall  ensure  the  removal  or  re-cycling  or disposal of hazardous parts of the scrapped vehicle is done as per the guidelines issued by the Central Pollution Control Board (CPCB) for environmentally sound management of End-of-Life Vehicles and AIS-129.
- (iii)  As  per  rule  14  of  these  rules,  the  Registered  Scrapper  is required  to  conduct  annual  regulatory  and  compliance  audit,  and audit  of  the  mass  flow  statement  of  the  RVSF,  by  any  of  the agencies  specified  under  rule  126  of  the  Central  Motor  Vehicles Rules, 1989.

(iv)  CPCB  has  published  the  Guidelines  for  environmentally sound facilities for handling and scrapping of End-of-Life vehicles in March, 2023. (v)  Ministry  of  Environment,  Forest  and  Climate  Change  has notified the End-of-Life Vehicles (Management) Rules, 2024 vide S.O. 367  (E)  dated  30.01.2024.  These  rules  provides  a  framework  of Extended Producer Responsibility (EPR) where the producers (including  importers)  of  vehicles  are  responsible  for  scrapping  of End-of-Life vehicles at RVSFs. (e)  and  (f) The  Vehicle  Scrapping  policy  aims  to  reduce  pollution from  old  and  unfit  vehicles  in  an  environment  friendly  manner through a scientific scrapping process. The notification issued vide GSR  653(E)  (as  amended  from  time  to  time)  provides  for  the integration of unorganised/informal sector with the formal scrapping ecosystem.  Out  of  the  62  RVSFs  established  so  far,  22  Nos  have been established by the former informal scrappers.

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