Incentive and penal action related to vehicle scrapping policy

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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

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