Vehicle older than 15 years will go off the road

Vehicle Scrapping Policy

As part of Budget 2023, the government has reiterated its focus on capital expenditure as well as vehicle scrapping policy along with a reduction in customs duty for electric vehicle components that will provide a cascading effect on new vehicle sales. The Indian government introduced the "Vehicle Scrapping Policy" in February 2021 to promote environmentally friendly disposal of old vehicles, reduce air pollution and promote the use of new vehicles equipped with advanced safety features. 

The policy lays down the framework for de-registering and scrapping of old vehicles and provides for setting up of authorized scrap centers. The policy applies to all vehicles, including private cars, two-wheelers, and commercial vehicles, which are more than 15 years old. The Finance Minister in her budget speech laid emphasis on infrastructure development, technology, sustainability and inclusive growth which is praiseworthy. Reduction in custom duties and replacing older, polluting vehicles will catapult adoption of green mobility. Government’s move to increase of 33% in capital expenditure on roads, railways and airports among others which will create a multiplier effect including rise in raw materials consumption, creation of jobs, infrastructure development and boost in investments. Union minister Nitin Gadkari said From April 1, all vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped. More than nine lakh vehicles, owned by central and state governments, transport corporations and public sector undertakings, that are older than 15 years will go off the road.

Scrapping a vehicle in India can have the following benefits:

1. Environmental protection: Old vehicles are a major source of air pollution, and scrapping them helps to reduce this pollution and protect the environment.
2. Promotion of new vehicles: Scrapping old vehicles promotes the use of new vehicles, which are equipped with advanced safety features and better emission controls.
3. Revenue generation: The scrap metal and parts of scrapped vehicles can be sold, generating revenue for the government and the scrap center.
4. Job creation: The process of scrapping vehicles creates job opportunities in the recycling industry.
5. Improved road safety: Newer vehicles are equipped with advanced safety features, which can help to reduce the number of road accidents and improve road safety.
6. Financial incentives: The Indian government offers financial incentives to vehicle owners who scrap their old vehicles under the Vehicle Scrapping Policy.
7. Ease of disposal: Scrapping a vehicle through an authorized scrap center is a hassle-free and convenient way to dispose of an old vehicle.