Lok Sabha Question No. 3031 (UNSTARRED), answered on 2023-12-21
Subject: Vehicle-Fleet Modernisation
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Srinivas Kesineni

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

LOK SABHA UNSTARRED QUESTION NO. 3031 ANSWERED ON 21 st  DECEMBER, 2023

## VEHICLE-FLEET MODERNISATION

3031. SHRI KESINENI SRINIVAS:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a) the details of progress made in implementing the Voluntary VehicleFleet Modernisation Programme, State-wise;
- (b) the list of all operational and proposed Registered Vehicle Scrapping Facilities (RVSF) in the country, State-wise;
- (c) the details of partner agencies operating RVSFs in Andhra Pradesh;
- (d) whether the Government has assessed the impact of the policy on the livelihoods  of  workers  in  the  automobile  industry,  transportation  and allied sectors;
- (e)  if  so,  the  measures  being  taken  by  the  Government  to  manage  the displacement of workers in these sectors and to secure their livelihoods; and
- (f)  whether  the  Government proposes providing financial assistance to Andhra Pradesh to incentivize declaration of tax incentives and one-time

waiver of pending liabilities on scrapping old vehicles and if so, the details thereof?

## ANSWER

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

- (a) 1.      The Ministry of Road Transport and Highways has formulated the Vehicle Scrapping Policy for creation of an ecosystem to phase out older unfit and polluting vehicles. The policy targets scrapping of unfit and polluting  vehicles  strictly  based  on  their  fitness.  In  order  to  enforce provisions  of  the  policy,  following  notifications  have  been  issued  and uploaded on the Ministry's website: -
- (i)  GSR  Notification  653  (E)  dated  23.09.2021  (amended vide GSR 695(E) dated 13.09.2022) 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.
- (ii)  GSR Notification 652 (E) dated 23.09.2021 (amended vide GSR 797(E)  dated  31.10.2022)  provides  for  recognition,  regulation  and control of Automated Testing Stations. The notification has come into force with effect from 25th September, 2021.
- (iii) GSR Notification 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.
- (iv) GSR  Notification 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.
- (v) GSR Notification 29(E) dt 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.
- (vi) 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.
2.      The progress made under the Policy, as on 18.12.2023, is as under:
- (i)     42 Registered Vehicle Scrapping Facilities (RVSFs) have been operationalized across 15 States/UTs.
- (ii) 37 Automated Testing Stations (ATSs) have been operationalized across 8 States/UTs.
- (iii)   19 states have announced concessions in Motor Vehicle tax for the vehicle registered against submission of "Certificate of deposit".
- (iv)    28,050 Government vehicles and 16,802 Private vehicles have been scrapped at RVSFs.
- (b)     The  list  of  operational  Registered  Vehicle  Scrapping  Facilities (RVSFs) in the country, State-wise, is provided in the annexure.
- (c)    Two RVSFs are operational in Andhra Pradesh. One in Krishna district (owned and operated by Duggi Vehicle Scrapping Private Limited)  and another in Guntur district (owned and operated by Hindustan Recycling Hub).
- (d) and (e)         The Voluntary-Vehicle Fleet Modernization Program (VVMP) or vehicle Scrapping Policy aims to formalise the existing informal vehicle scrapping industry  for disposal of vehicles in a scientific and environment friendly manner. The policy provides an opportunity to the workers  to  migrate  from  informal  to  formal  scrapping  industry  and therefore,  to  generate  more  employment  in  the  vehicle  scrapping industry with development of the scrapping ecosystem.
- (f)       1.   The  Central  Government  has  provided  incentives  to  State Governments for implementation of Vehicle Scrapping Policy. Department of Expenditure, Ministry of Finance has included an incentive of Rs. 2000 crore  for  the  States  in  its  ongoing  scheme  for  'Special  Assistance  to

States for Capital lnvestment 2022-23', The incentive amount was linked to the achievement of milestones by States as per the detailed guidelines issued vide letter dated 16.12.2022.

2.   Further, Scheme  for Special Assistance to States for Capital Investment  has  been  extended  for  the  financial  year  2023-24,  by  the Government and the incentive amount to the States has been increased to Rs.3000 crore, to incentivise scrapping of State Government vehicles which  are  older  than  15  years,  waiver  of  liabilities  on  old  vehicles, providing tax concessions to individuals for scrapping of old vehicles and setting  up  of  automated  vehicle  testing  facilities.  The  State  of  Andhra Pradesh, on completion of the laid out milestones can become eligible for a maximum admissible incentive of Rs.200 crore. As on date, no proposal has been received from the Govt. of Andhra Pradesh in the Ministry.

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3031 ANSWERED ON 21 st  DECEMBER, 2023 ASKED  BY  SHRI  KESINENI  SRINIVAS  REGARDING  VEHICLE-FLEET MODERNISATION

## State-wise Registered Vehicle Scrapping Facilities (RVSFs)

| STATE              | REGISTERED VEHICLE SCRAPPING FACILITIES (RVSFS)   | LOCATION               |
|--------------------|---------------------------------------------------|------------------------|
| Andhra Pradesh (2) | - Duggi Vehicle Scrapping private limited         | Krishna                |
|                    | - Hindustan Recycling Hub                         | Guntur                 |
| Assam (2)          | - Mahindra MSTC Recycling Pvt. Ltd. (Cero)        | Changsari (Guwahati)   |
|                    | - KD Ecosystem                                    | Rangiya                |
| Bihar (1)          | - Sri Neelayum Precoated Steel Pvt. Ltd.          | Bakhtiarpur (Patna)    |
| Chandigarh (1)     | - Select Technical Services                       | Chandigarh             |
| Chhattisgarh (1)   | - Metal Corporation of India                      | Raipur                 |
| Gujarat (5)        | - Mahindra MSTC Recycling Pvt Ltd (Cero)          | Kheda                  |
|                    | - CMR Kataria Recycling Pvt Ltd                   | Kheda                  |
|                    | - MTC Business Pvt Ltd                            | Sanand                 |
|                    | - Shuchaye Recyclers Pvt Ltd                      | Alang- Bhavnagar- Road |
|                    | - Shree Ambica Automotive Pvt Ltd                 | Surat                  |
|                    | - Chunk Recycling India Pvt Ltd                   | Jhajjar                |
|                    | - Indian Motors                                   | Sonipat                |
|                    | - Orissa Steelmetaliks Pvt Ltd                    | Gurgaon                |
| Haryana (8)        | - Pineview Technology Pvt Ltd                     | Kundli                 |
|                    | - PKN Motor Scrappers Pvt Ltd                     | Sonipat                |
|                    | - Rosmerta Auto Recycling Pvt Ltd                 | Gurugram               |
|                    | - Johar Motors Pvt Ltd                            | Palwal                 |
| Karnataka (1)      | - Mahindra MSTC Recycling Pvt Ltd (Cero)          | Bangalore Rural        |
| Madhya Pradesh (3) | - Mahindra MSTC Recycling Pvt Ltd (Cero)          | Indore                 |
|                    | - Emperial Construction                           | Bhopal                 |
|                    | - Kakda Stone Crusher                             | Bhopal                 |

| Maharashtra (1)    | - Bhagyalaxmi Rolling Mill Pvt Ltd                    | Jalna              |
|--------------------|-------------------------------------------------------|--------------------|
| Odisha (1)         | - Empreo Premium                                      | Bhubaneshwar       |
| Punjab (2)         | - Blal Steel Shredding Pvt Ltd - Dada Trading Company | Ludhiana Rupnagar  |
| Rajasthan (2)      | - Ganganagr Vaahan Udyog Pvt Ltd                      | Jaipur             |
| Rajasthan (2)      | - Wortech Engineers Pvt Ltd                           | Phagi              |
| Uttar Pradesh (10) | - Maruti Suzuki Toyotsu India Pvt Ltd                 | Noida              |
| Uttar Pradesh (10) | - Bharat Motor                                        | Bulandshahar       |
| Uttar Pradesh (10) | - Bharat Scrap Facilities                             | Bulandshahar       |
| Uttar Pradesh (10) | - Mahindra MSTC Recycling Pvt Ltd (Cero)              | Greater Noida      |
| Uttar Pradesh (10) | - Global Ultra Tech                                   | Rampur             |
| Uttar Pradesh (10) | - Go Green ELV Handlers                               | Baghpat District   |
| Uttar Pradesh (10) | - Grand Global Junkyard and Recycling LLP             | Hapur              |
| Uttar Pradesh (10) | - Nirvana Scrappers                                   | Baghpat            |
| Uttar Pradesh (10) | - Saral Auto Scrapping India Pvt Ltd                  | Ghaziabad          |
| Uttar Pradesh (10) | - V-Ventures                                          | Agra               |
| Uttarakhand (2)    | - Gadar Kharda Private Limited                        | Hardwar (Roorkie)  |
| Uttarakhand (2)    | - Sega Tech Solution Private Limited                  | Hardwar (Manglaur) |

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