The Ministry of Road Transport and Highways (MoRTH) has launched the Voluntary Vehicle Modernization Program or Vehicle Scrapping Policy to promote the scrapping of privately owned Commercial and Passenger Vehicles and replace the old polluting fleet with the less polluting newer fleet.
The Ministry has stated that the Vehicle Scrapping Policy will be implemented across the country through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). Presently, there are sixty-plus (60+) RVSFs across 17 States / UTs and seventy-five (75+) ATSs across 12 States / UTs operational in the country with many more in the pipeline.
MoRTH informed that several Commercial and Passenger Vehicle Manufacturers have agreed to offer discounts for a limited period against a Certificate of Deposit (Scrappage Certificate). These discounts will further incentivize scrapping of End-of-Life Vehicles, thereby ensuring plying of safer, cleaner and efficient vehicles on the roads.
Commercial Vehicles
Commercial Vehicle Manufacturers namely Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu, offered discount equivalent to 3% of the Ex-Showroom Price for a commercial cargo vehicle with more than 3.5 tonnes GVW scrapped by the Owner within last 6 months and a discount equivalent to 1.5% of the Ex-Showroom Price for a commercial cargo vehicle with less than 3.5 tonnes GVW scrapped by the Owner within last 6 months.
Discount to be offered to a person buying a vehicle against a Traded Certificate of Deposit of a Scrapped Commercial Vehicle would be equivalent to 2.75% of the Ex-Showroom Price for scrapping a commercial cargo vehicle with more than 3.5 tonnes GVW and a discount equivalent to 1.25% of the Ex-Showroom Price against a Traded Certificate of Deposit for scrapping a commercial cargo vehicle with less than 3.5 tonne GVW. This scheme may also be considered for Buses and Vans.
Passenger Vehicles
Passenger Vehicle Manufacturers namely Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India, offered discounts of 1.5% of the ex-showroom price of new car or Rs 20,000, whichever is less, against the passenger vehicle scrapped by the owner in the last six (6) months. Details of the scrapped vehicle to be linked in the Vahan system. Companies may voluntarily offer additional discounts on identified models. Individual Passenger Vehicle Manufacturer may have the liberty to extend this discount only on the identified models, within their vehicle portfolio. As the car is not getting exchanged but only scrapped, hence between exchange and scrap discount, only scrappage discount will be applicable.
Mercedes Benz India has offered a flat discount of INR 25,000, which will be over and above all existing discounts.
Further MoRTH informed that these Original Equipment Manufacturers (OEM) discounts are in addition to the scrap value provided by RVSFs to the vehicle owners and existing incentives of Motor Vehicle tax concession, waiver of fee for issuance of certificate of registration and waiver of liabilities by Government of India under the Vehicle Scrapping Policy linked to the certificate of deposit (CD) on purchase of a new vehicle, applicable in many States.
