Lok Sabha Question No. 250 (STARRED), answered on 2024-12-12
Subject: Vehicle Scrapping Policy
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Shri Dushyant Singh, Shri Balya Mama Suresh Gopinath Mhatre

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA STARRED QUESTION NO. 250

ANSWERED ON 12 TH  DECEMBER, 2024

## VEHICLE SCRAPPING POLICY

*250.   SHRI DUSHYANT SINGH:

SHRI BALYA MAMA SURESH GOPINATH MHATRE:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

## be pleased to state:

- (a) the  details  of  steps  taken  by  the  Government  to  create  an effective ecosystem for phasing out unfit and polluting vehicles across the  country,  with  particular  focus  on  establishing  and  promoting Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs);
- (b) the  total  number  of  Registered  Vehicle  Scrapping  Facilities (RVSFs)  and  Automated  Testing  Stations  (ATSs)  operational  across the country and the number of additional facilities planned to be set up;
- (c) the  specific  incentives  provided  by  the  Government  to  vehicle owners and manufacturers for scrapping old vehicles;
- (d) the expected environmental and economic  benefits of the Vehicle  Scrapping  Policy  particularly  in  reducing  air  pollution  and encouraging  the  use  of  newer  more  fuel-efficient  vehicles  and  the

manner in which this aligns with broader goals of the Government for clean and sustainable mobility; and the  manner  in  which  the  policy  has  impacted  the  vehicle

- (e) manufacturing sector particularly in terms of production?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(SHRI NITIN JAIRAM GADKARI)

(a) to (e) A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA  STARRED  QUESTION  NO.  250  ANSWERED  ON  12.12.2024 ASKED BY SHRI DUSHYANT SINGH AND SHRI BALYA MAMA SURESH GOPINATH MHATRE REGARDING VEHICLE SCRAPPING POLICY

- (a) The  Government  has  formulated  the  Voluntary  Vehicle  Fleet Modernization Program (VVMP) 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. Following notifications have been issued and uploaded on the Ministry's website:
- (1) GSR 653 (E) dated 23.09.2021 provides the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 for establishment of Registered Vehicles Scrapping Facility (RVSF). The notification has come into force with effect from 25th September,  2021.  These  rules  have  been  further  amended  vide GSR 695(E) dated 13.09.2022 and GSR 212(E) dated 15.03.2024.
- (2) GSR  652  (E)  dated  23.09.2021  provides  for  recognition, regulation and control of Automated  Testing Stations. The notification has come into force with effect from 25th September, 2021.  These  rules  have  been  further  amended  vide  GSR  797(E) dated 31.10.2022 and GSR 195(E) dated 14.03.2024.
- (3) GSR 714 (E) dated 04.10.2021 provides for upward revision of registration fee, fitness testing fee and fitness certification fee of vehicles. The notification has come into force with effect from 1st April, 2022.
- (4) GSR 720 (E) dated 05.10.2021 provides for concession in the motor vehicle tax for the vehicle registered against submission of "Certificate of deposit". The notification has come into force with effect from 1st April, 2022.
- (5) GSR 272(E) dated 05.04.2022 provides for mandatory fitness of  motor  vehicles  only  through  an  Automated  Testing  Station,

registered  in  accordance  with  rule  175  of  the  Central  Motor Vehicle Rules 1989, as under -

- (i) For  Heavy  Goods  Vehicles/Heavy  Passenger  Motor Vehicles with effect from 01st April 2023 onwards, and
- (ii) For  Medium Goods Vehicles/Medium Passenger Motor Vehicles  and  Light  Motor  Vehicles  (Transport)  with  effect from 01st June 2024 onwards.
- (6) GSR  29(E)  dated  16.01.2023  provides  that  Certificate  of registration for vehicles owned  by  Central, States and  UT governments and their Departments, Local government (Municipal Corporations  or  Municipalities  or  Panchayats),  State  transport Undertakings,  PSUs  and  other  Autonomous  bodies  with  the Central Government and State Governments, shall not be renewed after the lapse of fifteen years.
- (7) GSR 663(E) dated 12.09.2023 provides for extension of date for mandatory testing of Transport Vehicles through an Automated  Testing  Station,  registered  in  accordance  with  rule 175  of  the  Central  Motor  Vehicle  Rules  1989  to  01st  October 2024.
- (8) GSR 709(E) dated 14.11.2024 provides for extension of date for mandatory testing of Transport Vehicles through an Automated  Testing  Station,  registered  in  accordance  with  rule 175 of the Central Motor Vehicle Rules 1989 to 01st April 2025.
- (b) As on 04.12.2024, 76 RVSFs and 92 ATSs are operational across the country.
- (c) and (d) (i) The following incentives are provided to citizens opting for voluntary scrapping of their vehicles:-
-  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.
-  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  nontransport vehicles.

(ii) The Voluntary Vehicle Fleet Modernization Program (VVMP) is  aimed  at  promoting  circular  economy  where  End-of-Life  Vehicles (ELVs)  are  dismantled  in  an  environment  friendly  manner  for  use  of recycled material in a sustainable way.

(e) The impact of VVMP on vehicle manufacturing sector can not be assessed.  However, it will promote the circular economy by reuse and recycling of material in production.

*****