Incentive and penal action related to vehicle scrapping policy
Recently the Ministry of Road Transport and Highways (MoRTH) has issued a notification on ‘Incentive and Penal Action’ related to Vehicle Scrapping Policy.
- The move is aimed at motivating vehicle owners to give up such old and polluting vehicles whose maintenance and fuel consumption creates more economic burden.
- Road and Transport Ministry has now bifurcated the registration renewal fees for all old vehicles including heavy vehicles. It also mentioned the registration fees for new vehicles.
- In punitive action, the fee for fitness test of vehicles older than 15 years and renewal of fitness certificate will be increased.
- In addition, the fitness certification fee for transport vehicles older than 15 years will be increased.
- In August 2021, the National Automobile Scrappage Policy (NASP) was launched. Its objective is to modernize the number of vehicles and remove unsuitable vehicles from the roads in a scientific manner.
- There are 51 lakh light motor vehicles in India, which are more than 20 years old, and 34 lakh that are more than 15 years old.
Importance of NASP:
- Reducing vehicular air pollution to meet India’s climate commitments. Improve road and vehicle safety.
- To formalize the present informal vehicle scrapping industry along with achieving better fuel efficiency.
- To promote the availability of low cost raw materials for the automotive, steel and electronics industries.
Source – PIB