the scrapping policy is finally here and as our blog has been researching it comes with a mix of incentives and disincentives to drive the policy let's take a look according to this policy commercial vehicles older than 15 years and private vehicles older than 20 years if they fail a fitness test they will be termed as end-of-life vehicles and they will only be fit for scrapping you cannot use them on the roads a set of rules for hiking the registration costs for new vehicles renewal of registration and higher fees for fitness tests have already been announced for transport vehicles and personal vehicles as well the government has already said that government vehicles older than 15 years will be scrapped they cannot be registered once again this rule comes into effect from the 1st of april 2022.
will car scrappage scheme be extended
let's take a look at more rules that are being framed guidelines on scrapping centers are being issued guidelines on setting up fitness test centers are also being issued and these fitness centers would come up on the public private partnership model some of the incentives that the scrapping policy would bring with it scrap value of the vehicle that would be around four to six percent of the new vehicle cost this is an estimate of the ministry of road transport state governments are also being advised to give a 15 to 25 rebate on road tax this is an advisory it is a recommendation the other incentive the oems perhaps most important one oems are being advised to give a five percent discount to customers who come with a scrapping certificate this is also a recommendation and if you furnish your scrapping certificate then your new vehicle will be registered at no cost let's see when these rules will work well from the 1st of october this year very important for companies which are getting into this this field mandatory fitness testing for medium and heavy commercial vehicles begins from the 1st of april 2023 for all other categories from 1st of june 2024 huge potential for scrapping in the market in fact according to minister gut curry there are 51 lakh light motor vehicles in the market which are older than 20 years 34 lakh light motor vehicles which includes two wheelers and cars which are older than 15 years there are also 17 lakh medium and heavy commercial vehicles older than 15 years which are running on the road but do not have any fitness certificate so huge potential there and according to the ministry of road transport this would be a big job creator for the auto industry as well as you.
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