Road Ministry to Introduce Draft for Vehicle Scrappage Policy
After a successful implementation of new traffic rules by the road ministry, it is now time for Vehicle Scrappage Policy. As per sources, road ministry has prepared a draft for the complete scrappage policy. In the draft note, vehicles older than 15 years will get a hike in registration fees. Previously, the registration fee for such vehicles was Rs. 600 but now it will reach up to Rs. 15000. For the re-registration of such vehicles, the fees will be hiked to Rs. 40,000 against the current value of Rs. 1500. In case the registration of vehicles is not renewed after 15 years, the vehicles will be automatically de-registered.
Scrappage policy is a government-funded program that supports the replacement of old vehicles with the new ones and is usually intended to stimulate the automotive industry and remove obsolete and polluting vehicles away from the roads.
Today, several countries have the scrappage policy as it is an essential activity for maintaining the demand and supply of the vehicle as well as it also helps in pollution control. Most of the countries came up with this policy during the 2008 global economic recession.
The Indian government aims to control pollution due to old commercial vehicles that majorly deteriorate the air quality and harms the environment. This policy will help in generating business and job opportunities for newly opened scrapping centers.
Mahindra & Mahindra, one of the auto giants in India has announced a partnership with Metal Scrap Trade Corporation Ltd which will result in several scrapping centers called Mahindra Accelo, being established.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.