Lok Sabha Question No. 2323 (UNSTARRED), answered on 2023-08-03
Subject: Vehicle Scrapping Policy
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Kotagiri Sridhar

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

LOK SABHA UNSTARRED QUESTION NO. 2323

ANSWERED ON 3 RD  AUGUST, 2023

## VEHICLE SCRAPPING POLICY

2323.  SHRI SRIDHAR KOTAGIRI:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a)  whether  the  Government  plans  on  changing  the  vehicle  scrappage criteria to be based on kilometres driven rather than the vehicle's age and if so, the details thereof; (b)  whether  the  Government  is  aware  of  the  demand  of  most  vehicle owners  to  have  an  increased  tax  deduction  of  10  per  cent  of  the  old vehicle's original invoice value or 50 per cent of road tax paid for any new vehicle; (c) if so, the plans to implement this to further incentivise owners to scrap their old vehicles; (d) whether fitness test on old vehicles is estimated to cost Rs. 40,000 every five years, in addition to surcharges of 10 to 25 per cent of green taxes; and (e) if so, whether the Ministry has any plans to dismiss these requirements
- and if so, the reaction of the Government thereto?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI)

- (a)   1.      No such proposal is under consideration. The Ministry of Road Transport and Highways has formulated the Vehicle Scrapping Policy that includes a system of incentives/dis-incentives for creation of an ecosystem to phase out older, unfit polluting vehicles across the country. The policy targets scrapping of unfit and polluting vehicles strictly based on their fitness ascertained through Automated Testing Station.
2.       GSR  Notification  29(E)  dt  16.01.2023  provides  that  Certificate  of registration for vehicles owned by Central, State 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.
- (b) and (c)          1.      No such representation has been received. Under the vehicle scrapping policy, as per GSR 720(E) dated 05.10.2021, vehicle owners are eligible for Concession in motor vehicle tax of up to 25% for non-transport  vehicles  and  up  to  15%  for  transport  vehicles  which  are purchased against Certificate of Deposit. Implementation of the provision comes under the purview of State/UT Governments.
2.       So  far,  15  states/UTs  have  announced  concessions  in  the  Motor vehicle Tax against the Certificate of Deposit. These States are Bihar, Madhya  Pradesh,  Rajasthan,  Assam,  Jharkhand,  Chandigarh,  Odisha, Uttar  Pradesh,  Haryana,  Karnataka,  Maharashtra,  Punjab,  Mizoram, Chhattisgarh and Kerala.
- (d) and (e)      The fees for conducting fitness test of Vehicles (both manual and automated) are administered as per rule 81, revised vide GSR 714(E) dated  04.10.2021,  of  the  Central  Motor  Vehicles  Rules,  1989.  Further, MoRTH  has  not  issued  any  guidelines/instructions  to  States  regarding imposition of Green Tax.

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