According to a notice from the Road Transport and Highways Ministry, starting on April 1, all vehicles held by the federal and state governments, including buses owned by transportation corporations and public sector enterprises, would be de-registered and demolished. According to the notification, the special purpose vehicles (armored and other specialized vehicles) utilized for operational purposes in support of national defence, the upkeep of law and order, and internal security are exempt from the norm.
According to the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, “Disposal of such vehicles shall, after the expiry of the fifteen years from the date of initial registration of the vehicle, (should) be ensured through the Registered Vehicle Scrapping Facility set up in accordance with the said Rules.”
The regulation, which was announced in the Union Budget for 2021–22, stipulates that personal automobiles must undergo fitness testing after 20 years, while commercial vehicles must do so after 15 years.
The Center has announced that states and union territories will offer up to a 25% tax credit on road tax for automobiles that are purchased after discarding old vehicles under the new policy, which takes effect on April 1, 2022.
Asserting that the nation has the potential to become a vehicle recycling hub for the whole South Asian area, Union minister Nitin Gadkari stated last year that his goal is to create at least one auto recycling facility within 150 kilometres of each metropolitan centre.
The National Vehicle Scrappage Policy was introduced by Prime Minister Narendra Modi in 2021, and he had stated that it will aid in the phase-out of unfit and polluting automobiles and also advance a circular economy.