Home / News / India /  Vehicle Scrapping Policy: Govt releases list of incentives, disincentives

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 the vehicle owners to discard their old and polluting vehicles having higher maintenance and fuel consumption costs.

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

The disincentives include: 1). Increase in the fee for conducting fitness test and renewal of fitness certificate for motor vehicles more than 15 years old. 2). Increase in the fitness certification fee for transport vehicles more than 15 years old. 3). Increase in the renewal of registration fee for personal vehicles (non-transport vehicles) 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. 

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