Ministry of Road Transport and Highways releases a list of incentives, disincentives under the vehicle scrapping policy

The Ministry says that these incentives and disincentives combined are aimed at encouraging vehicle owners to discard their old and polluting vehicles, which have higher maintenance and fuel consumption costs.

The Ministry of Road Transport and Highways issued a list of incentives and disincentives pertaining to the Vehicle Scrapping Policy on Tuesday. These incentives and disincentives combined are aimed at encouraging vehicle owners to discard their old and polluting vehicles, which have higher maintenance and fuel consumption costs.

"As an incentive, there will be a waiver of the fee for the issuance of a certificate of registration for a new vehicle, purchased under the authority of the Certificate of Deposit (CoD) issued by a Registered Vehicle Scrapping Facility for a vehicle being scrapped, according to the press statement by the ministry.

The disincentives include: 

1) An increase in the fee for conducting fitness tests and renewing fitness certificates for vehicles older than 15 years.

2)An increase in the fitness certification fee for transport vehicles more than 15 years old. 

3). An increase in the registration fee for personal vehicles (non-transport vehicles) that are more than 15 years old.

Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman on February 1 announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.