Notification on incentives and Disincentives Pertaining to Vehicle Scrapping Policy Issued

In the Vehicle Scrapping Policy, it is proposed to have a system of incentives and disincentives to nudge vehicle owners to discard old and polluting vehicles, which have higher maintenance and fuel consumption costs.

In this regard, the Ministry of Road Transport and Highways has issued a GSR Notification, 714(E) dated 04.10.2021 in the Gazette of India, which shall come into force from the 1^st day of April, 2022. Details are as below:

a. As an incentive, there will be waiver of the fee for issue of certificate of registration for a new vehicle, purchased against the authority of the Certificate of Deposit (CoD) issued by a Registered Vehicle Scrapping Facility for a vehicle being scrapped.

b. As regards disincentives, there will be:

1. Increase in the fee for conducting fitness test and renewal of fitness certificate for motor vehicles more than 15 years old,
2. Increase in the fitness certification fee for transport vehicles more than 15 years old, and
3. Increase in the renewal of registration fee for personal vehicles (non-transport vehicles) more than 15 years old.

<Gazette notification>