Big incentives on the cards against vehicle scrappage: Nitin Gadkari

New Delhi, Mar 18: Private and commercial vehicles will be de-registered after 20 and 15 years respectively and their re-registration will be discouraged, Union Minister for Road, Transport and Highways, Nitin Gadkari said.

He also said that the owners of old vehicles will get a strong incentive to scrap old and unfit. vehicles under the new Vehicle Scrappage policy. Gadkari made the announcement in Parliament on Thursday.

"It is proposed that commercial vehicles be de-registered after 15 years in case of failure to get the fitness certificate. As a disincentive measure, increased fees for fitness certificate and fitness test may be applicable for commercial vehicles 15 year onwards from the date of initial registration," Gadkari said in Parliament.

"It is proposed that Private vehicles be de-registered after 20 years if found unfit or in the case of a failure to renew registration certificate. As a disincentive measure, increased re-registration fees will be applicable for private vehicles 15 year onwards from the date of initial registration. It is being proposed that all vehicles of the Central Government, State Government, Municipal Corporation, Panchayats, State Transport Undertakings, Public Sector Undertakings and autonomous bodies with the Union and State Governments may be de-registered and scrapped after 15 years from the date of registration," he further added.

He also said that the the policy would cover an estimated 51 lakh light motor vehicles that are above 20 years of age and another 34 lakh LMVs above the age of 15 years of age. Further it would co ver 17 lakh medium and heavy motor vehicles, which are above 15 years and are without fitness certificates.

"The scheme shall provide strong incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres, which shall provide the owners with a scrapping certificate," the minister said in the Lok Sabha.

"The Ministry of Road Transport and Highways will promote setting up of Registered Vehicle Scrapping Facility (RVSF) across India and will encourage public and private participation for opening up of such centres. Efforts are also being made to set up Integrated Scrapping Facilities across India. Some of the identified places include Alang in Gujarat, where it is being planned to develop a highly specialized centre for scrapping among many other potential centres, where different scrapping technologies can be synergised together," he said.

Some of these incentives would include scrap value for the old vehicle given by the scrapping centre, which is approximately 4 to 6 per cent of the ex-showroom price of a new vehicle. There would also be a possible 25 per cent road tax rebate for personal vehicles and up to 15 per cent for commercial vehicles and also a possible discount of up to 5 per cent on purchase of a new vehicle. Against the scrapping certificate, registration fee also may be waived off for purchasing a new vehicle.