India moves a step closer to bring in vehicle scrappage policy. What it means

The government on Saturday said a Cabinet note has been formulated for the vehicle scrapping policy.

"Ministry of Road Transport and Highways (MoRTH) has formulated a note for Cabinet on creation of an ecosystem for voluntary and environment friendly phasing out of unfit and old polluting vehicles," Minister of State for Road Transport and Highways VK Singh told Rajya Sabha in reply to a query.

The proposed policy, once approved, will be applicable on all vehicles, the government had said earlier.

The policy was sent for a fresh round of consultation with stakeholders on the direction of the PMO.

Road Transport and Highways Minister Nitin Gadakri had earlier this year said once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by "20-30 per cent".

Vehicle scrappage policy in India may also allow scrap cars from abroad.

On July 26, 2019, the government had proposed amendments to motor vehicle rules to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.

In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current time-frame of one year.