Vehicle Scrap Policy: PM launches scrap policy for unfit vehicles

Written by Shiksha Press

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Vehicle Scrap Policy:PM launches scrap policy for unfit vehicles

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Prime Minister Narendra Modi on Friday launched the much-awaited vehicle scrappage policy. Addressing the investors conference virtually in Gujarat, Prime Minister Modi described the scrap policy as ‘Kashtra Se Kanchan Abhiyan’. Also said, this policy will play a big role in removing unfit vehicles from the roads in the country. The policy will bring investment of more than Rs 10,000 crore in the country and thousands of jobs will be created.

According to the new policy, 4 to 6 percent of the ex-showroom price of the vehicle being scrapped will be given. On the basis of scrap certificate, there will also be benefits for taking a new vehicle. In this way, you can get a total benefit of up to 15% on the cost of the new vehicle. Private vehicle registration in the country is for 15 years and commercial vehicle for 10 years. After this the vehicle can be scrapped. If the vehicle is in good condition then you will be able to get the fitness certificate. The registration will be renewed on the basis of the certificate. If the owner wishes, the vehicle can be given directly for scrap. Scraping centers or fitness centers are yet to open across the country. In such a situation, scrapping may take one-and-a-half year for light vehicles and two years for heavy vehicles. Full implementation will start by the year 2023.

Vehicle Scrap Policy: Some Important Questions 

How to get 15% profit on scrapping of old vehicle and buying a new one?

According to automobile sector expert Sanjeev Garg, a discount of up to 10% on scrap certificate and registration of a new vehicle can be combined. 5% discount on new vehicle is different. In this way a total profit of 15% is possible on the price. That is, after giving the old car in scrap, if you buy a new car worth 10 lakh rupees, then there can be a profit of up to one lakh rupees.

There will be a scrap center in every district, the states will give free land

There will be at least one scrap center in every district. {Centre has said that the state governments should give free land to these centers. {Soon after the announcement of the policy, Tata Motors has tied up with the Government of Gujarat for the first scrap centre. {Here every year 36 thousand vehicles will be scrapped.

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Scrap certificate will be valid across the country, will be able to use only once, ‘Cancelled’ will be stamped as soon as a new vehicle is purchased.

What are scrap and fitness certificate?

If the old vehicle is to be given in the junk, then the scrap certificate will have to be taken. If the vehicle is fit to drive, then a fitness certificate has to be obtained. Both the centers will open in every district with the permission of the central government. That’s where the whole process will happen.

I have to give the vehicle in scrap. What will be the process?

The registered owner of the vehicle will have to go to the scrapping center along with the registration certificate. There the complete record of the vehicle will have to be given. It will be checked at the center whether the vehicle is not included in the data of the stolen vehicles of the National Crime Records Bureau (NCRB). If the theft is not found in the record, then further process of scraping will be done.

What needs to be done for fitness certificate?

The fitness center will conduct a fitness test on parameters such as vehicle pollution, roadworthiness, hazard to the environment. Brakes, engine and other parts will also be checked. The entire work will be done at the Automated Centers. So there will be no scope for manipulation.

If the vehicle is not found fit?

In this case the registration will not be renewed. That is, you will not be able to drive it on the road. If there is no registration then there will be no way but to give the vehicle in scrap.

I do not have a valid registration certificate?

The vehicle will be identified from the records at the scrapping center. Scraping can be done only after matching the identity of the owner and the details of the vehicle.

Which documents need to be carried for scraping?

Original registration certificate of the vehicle, letter of permission for scrapping from the owner, PAN card, crossed bank cheque, identity proof such as passport, voter ID, driving license, electricity, water, telephone or cooking gas bill for proof of address and digital photos. If the vehicle is ancestral or inherited, the death certificate and succession proof of the owner will have to be given.

How to get benefits after giving vehicle in scrap?

After filling Form-2 at the center and completion of documents, the owner will get the receipt certificate. This will be called Certificate of Deposit. Only this will get benefits. After the vehicle is scrapped, the appraisal amount will be received from the center.

What will be the benefit of vehicle scraping?

Scrap vehicle will be appraised. This amount has been fixed at 4 to 6 percent of the current ex-showroom price of the vehicle. On showing the scrap certificate, the registration fee of the new vehicle will be waived. Road tax will also be reduced by 25%. 5% discount can also be available on new vehicle.

How many times will this certificate be used?

Will be valid anywhere across the country. It will be valid for one time only. After the purchase of a new vehicle, ‘Cancelled’ will be stamped.

After 15 years this certificate has to be taken every 5 years. Can take maximum 3 times. Then there will be scrap only.

Will the stolen car be scrap?

All the documents of the vehicle will be checked at the scrap center. So there is no doubt about it at all.

If the condition is fine then ? 

If the car is fine then you have to take a fitness certificate. Then there will be a new registration and then you will be able to drive on the road.

How will the scraping be fixed ?

Private vehicle registration is fixed for 15 years, commercial for 10 years. After that it has to be given in scrap.

So this was information Regarding Vehicle Scrap Policy: PM launches scrap policy for unfit vehicles.

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