Union Minister Nitin Gadkari today said the vehicle scrapping policy will help the country to boost its automobile industry turnover to Rs 10 lakh crore from the current Rs 4.5 lakh crore.
The new policy will help the industry become more cost-competitive due to the recycling of plastic, copper, aluminium, steel and rubber, available in scrapped cars.
The Road Transport and Highway Ministry will publish a draft notification for stakeholders’ comments in the next few weeks.
The policy will also help improve fuel efficiency and reduce pollution, Gadkari said in Lok Sabha.
It provides a fitness test for personal vehicles after 20 years, while commercial vehicles would require it after the completion of 15 years.
Gadkari has also written to automakers, advising automakers to provide an incentive of a five percent rebate for those buying a new vehicle after producing a scrapping certificate.
The aim is to reduce the population of old and defective vehicles and achieve better fuel efficiency, Gadkari said.
Around 17 lakh medium and heavy commercial vehicles are older than 15 years without a valid fitness certificate, he said.
A vehicle failing the fitness test or failing to get a renewal of its registration certificate may be declared as End of Life Vehicle.
The ministry has 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 years onwards from the date of initial registration, according to the minister.
The ministry will promote the setting up of Registered Vehicle Scrapping Facility (RVSF) and will encourage public and private participation in opening such centres.