The number of registered vehicle scrapping centres will be increased to cater to the expected demand
Between 50 and 70 Registered Vehicle Scrapping Facilities (RVSFs) are to be set up across the country over the next 5 years.
This was revealed at a national conference on ‘Investment Opportunities in Highways, Transport and Logistics’ that was held recently in which Union Minister for Road Transport and Highways Nitin Gadkari was the chair.
The conference highlighted investment opportunities in vehicle scrapping facilities highways and transport, among several other things.
Through its Voluntary Vehicle-Fleet Modernisation policy (announced in this year’s Union Budget), the Centre aims to phase out over 1 crore vehicles that are polluting and deemed unfit.
Union Minister Gadkari has said the Centre’s Vehicle Scrapping Policy will create jobs, reduce pollution, boost export, improve tax revenues and help the automobile sector grow further.
By increasing the number of registered vehicle scrapping facilities and improving the infrastructure, value extraction is expected to rise from around 70 percent at present to 90-95 percent in the future.
Irrespective of its age, a vehicle will be targeted for scrapping based on its fitness. Mandatory tests will be done for 20-year-old private vehicles, 15-year-old commercial vehicles and 15-year-old government vehicles.
A motor will be labelled as “End of Life” vehicles if it fails the fitness test and will be de-registered. But, if ordered by the Appellate Authority certain vehicles will be permitted a re-test after they are repaired and reinspected.
The Centre will begin implementing the policy starting with mandatory scrapping of end-of-life government vehicles from 1st October 2022, while mandatory fitness tests will be done for heavy commercial vehicles and for other classes from 1st April 2023 and 1st June 2024, respectively.
Moreover, the government plans to instal 75 automated vehicle testing stations in the next 4 to 5 years and is taking measures to make scrapping seamless even for facility operators.