Aim of the Policy:
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The policy is aimed at creating an ecosystem to phase out unfit and polluting vehicles. It will reduce pollution, improve fuel efficiency and increase the government’s revenue collection from the sale of new vehicles.
When will the policy be applied?
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The policy will kick-in for government vehicles from April 1, 2022.
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The Mandatory fitness testing for heavy commercial vehicles will start from April 1,2023 and
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For all other categories of vehicles including personal vehicles will start in phases from June 1,2024.
Key Features of the Policy:
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A vehicle has to undergo fitness tests after the completion of 20 years in the case of privately owned vehicles and 15 years in the case of commercial vehicles.
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Any vehicle that fails the fitness test or fails to renew its registration certificate may be declared as an End of Life Vehicle. These vehicle owners will be encouraged to scrap the vehicles.
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Vehicle re-registration fees will be increased to discourage people from running old vehicles.
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Automated fitness centres will be established throughout the country to ease vehicle scrapping.
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All government vehicles and those owned by PSUs will be de-registered after 15 years.
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Vintage cars will be exempted from this policy and separate guidelines will be formulated to regulate them.
Incentives for Scrapping: In order to lure owners into vehicles scrapping policy their vehicles, the Government has suggested the following ways:
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A vehicles scrap value of the ex-showroom price of the vehicle ranging from 4-6% will be given to the owner.
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A rebate of up to 25% will be given in Road Tax.
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Vehicle manufacturers will be advised to give a 5% discount on new vehicles against a scrapping certificate.
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So in total benefits of up to 10-15% can be availed on the older vehicles, who have reached the end of their lifecycle.