Vehicle Scrap Policy 2023

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Voluntary Vehicle-Fleet Modernization Program (VVMP) or Vehicle Scrap policy is aimed at creating an eco-system for phasing out of unfit and polluting vehicles from road, and bring new vehicle on roads, this program will help the environment, economy and will create further new jobs and clean and better air in cities and rural areas.

Table of Contents

Key benefits of VVMP Program

Reduce 1 Cr old vehicles from road without having -proper fitness and valid re registration certificate from RTO.
Improve road, Passenger and vehicular safety.
Boost Auto sector sales and create new jobs in auto sector.
Improve fuel efficiency and reduce the maintenance cost for vehicle owners.
Formalize the current informal scrappage policy.
Boost Availability of low-cost parts for automobile, steel and electronics industry.

Better Environment – Low Emission

Currently the emission created by pre-BS vehicle is 15 times high as compare to BSV1 or BS6 vehicles.

1 Old truck/ Pre BS-Truck creates the similar emission equivalent to 15 new trucks.

1 Old taxi/ Pre BS taxi creates similar emission to 15 new vehicles or vehicles which are B6 complaint.

Vehicle Need to Be Scrapped

Vehicles which do not clear the fitness will be scrapped as per policy, The criteria for both Commercial and private vehicles is different.

The new policy will be applicable from 1 April 2023 for commercial vehicles and Private vehicles it will be applicable from 1^st April 2024.

If a vehicle fails an automated fitness test, one re-test after the necessary repair/rectification, and re-inspection if ordered by the Appellate Authority, it will be declared an ELV.

Applicability in Delhi NCR subject to orders of the National Green Tribunal dated 26.11.2014 and 07.04.2015 passed in O.A. No. 21 of 2014.

The order states that any petrol vehicle older than 15 years and any diesel vehicle older than 10 years shall not be permitted to ply on the roads in Delhi-NCR

For new commercial vehicles as per new policy the fitness test will be mandatory after completion of 8 years from Registration date and every year, they have to undergo a fitness test.

Fees for Fitness Test

Fees for automated fitness test will start from Rs 1000 and Rs 12500 depending upon vehicle type and classification.

There will be two fees applicable to all vehicles one- Registration Fees and two- Automated test fees, for example one small truck owner has to pay Rs 1000 plus Rs 7500 total of Rs 8500 for Test and Re Registration and for big trucks it will cost up to Rs 14000 approx.

Below are the fees mentioned basis vehicle classification.

Fees for Private Vehicles

Private vehicles owners also have to spend Rs 6600 for gaining valid Fitness Certificate for old vehicles.

Benefits of getting car Scrapped

If anyone like to scrap the old car there are many benefits and incentives declared by government.

Incentives

Govt approved Scrap center’s will pay higher value of cars, Approx. value will be to 4-6% of car.
Registration cost to be waived of when you purchase a new after getting your scrap car.
Waiver of 15% to 25% on Motor tax.
Auto OEM has also been advised by government to provide 5% additional discount on new car.

Government Preparing the Road Map

ATTs -Automated Testing Stations

Setting up Automated testing center’s across the country. These center’s will be fully automatic and will be designed in such a way that minimal manual intervention is required while testing vehicles.

In first phase 75 such stations will be opened and later plan is to open 450-500 stations across the country. All these stations will be opened on PPP model.

RVSFs- Registered vehicle Scrapping Facility

State of the art, fully automated RVSF’s will be setup. They will be working scientifically and, in an environment, friendly manner, more than 50 RVSF are planned in coming 4-5 years. RVSF will be having a target to recover the 90% value from old vehicles whereas the old scrapping method used in India is only able to recover 70%- 75% value only.

Go electric if you scrapping your car.

How to open ATTs- Automated Testing Stations

Any individual or company can apply directly to the Transport commissioner of your area.

Application for Preliminary Registration certificate (for commencement of construction/ establishment) or grant / renewal of Certificate of Registration to be made to the Registering Authority1 , along with applicable fee • Preliminary registration Fee: INR 10,000 • Registration Fee: INR 50,000 • Security Deposit: INR 5,00,000

How to open RVSFs- Registered Vehicle Scrapping Facility