SCRAP POLICY 2021

The topic for today’s article is scrap policy in India. Now the question is what is meant by scrap? The answer to this is – to remove an unwanted covering or a top layer from something. Scrap consists of recyclable materials left over from product manufacturing and consumption, such as parts of vehicles, building supplies, and surplus materials.

Unlike waste, scrap has monetary value, especially recovered metals and non-metallic ,especially are also recovered for recycling. And the much -awaited draft policy on vehicle scrapping is finally out.

The policy outlines the criteria for defining end -of-life vehicles and scrapping them. It also makes provision for scrapping facilities for safe disposal of waste and material recovery. This policy has only “advised” the state governments and the automobile industry to provide voluntary incentives to the owners of the vehicles.

This proposed policy seeks to phase out unit vehicles to reduce vehicular pollution, meet the climate commitments, improve road safety and fuel efficiency, formalise informal vehicle scrapping industry and recover low cost material for automotive, steel and electronics industry. The vehicle scrapping scheme is likely to usher in significant change and is expected to generate demands for new vehicles.

The policy says, commercial vehicles of more than 15 years and passenger vehicles of more than 20 years will have to be mandatorily scrapped if they don’t pass the fitness and emission tests. Vehicle owners who would voluntarily scrap their vehicles will get a rebate on road tax in the range of 15% to 25% and complete waiver of registration fees on the next vehicle purchase.

The government has envisaged investments worth Rs 10000 core for establishing vehicle fitness centers. Most likely scrapyards are to be established in the four zones and they will also supply scrap steel to automobile manufactures and other industries. The milestones set in the draft policy require the rules for fitness tests and scrapping to be in place by October 1, 2021. All government and PSU -owned vehicles older than 15 years will be scrapped by October 1, 2022. The same will be done for other vehicles by 2023 and 2024.

Hope you will like this information. Thank you!!

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