Coming soon: Chandigarh all set to have a dedicated vehicle scrappage facility

Chandigarh is all set to get its first dedicated vehicle scrappage policy under the National Vehicle Scrappage Policy. This facility would be located in Phase 1 of its Industrial Area and is scheduled to be operational from April 1 of the next year.

By: HT Auto Desk
| Updated on: 08 Dec 2022, 15:27 PM
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Vehicle scrappage policy has the potential of putting old polluting vehicles off roads to help environment as well as boost demand for new vehicles.
Vehicle scrappage policy has the potential of putting old polluting vehicles off roads to help environment as well as boost demand for new vehicles.
Vehicle scrappage policy has the potential of putting old polluting vehicles off roads to help environment as well as boost demand for new vehicles.
Vehicle scrappage policy has the potential of putting old polluting vehicles off roads to help environment as well as boost demand for new vehicles.

As per a report in Hindustan Times, those with old and polluting vehicles can opt to get their vehicles scrapped and look forward to special incentives thereafter. “As per the policy, beneficiaries will get a concession in Motor Vehicle Tax on the purchase of a new vehicle after submitting a certificate of deposit, which will be issued by the registered vehicle scrapping facility (RVSF) when he or she deposits the vehicle," a State Transport Authority official was quoted as saying in the same report.

The policy allows for up to 25 per cent concession on non-transport vehicles while concession of up to 15 per cent can be had on transport vehicle. The incentives on offer for someone making use of the policy is a 25 per cent rebate on road tax if they choose to purchase a vehicle afterwards.

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The Vehicle Scrappage Policy in the country is aimed at taking out old and/or polluting vehicles off the city roads as well as highways. This is likely to have a positive impact in bringing down vehicular emission levels while also potentially giving impetus to demand for newer vehicles.

Prime Minister Narendra Modi launched India's Vehicle Scrappage Policy in August last year. The policy will make it mandatory for personal vehicles to undergo fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.

According to the notification issued by the ministry, owners of vehicles that are more than 15 years old, will have topay eight times more to renew registration. The policy has fixed 5,000 as the renewal fee for cars older than 15 years. Similarly, the fee to renew registration of 15-year old bikes would cost 1,000 compared to the current fee of 300.

First Published Date: 08 Dec 2022, 15:27 PM IST
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