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<ul><li>The Indian government today unveiled its vehicle scrappage policy to take old, unfit and polluting vehicles off the road.</li><li>The policy offers incentives to owners of these vehicles in the form of reduced road taxes and waiver of registration charges on their subsequent vehicle purchase.</li><li>The government aims to attract investment to the tune of ₹10,000 crore and generate over 35,000 jobs in the process.</li></ul>In a virtual address during an investor summit in Gujarat, India’s Prime Minister Narendra <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword> announced the <keyword id="3393307" type="PERSON" weightage="20" keywordseo="Voluntary-Vehicle-Fleet-Modernisation-Programme">Voluntary Vehicle Fleet Modernisation Programme</keyword>, or the vehicle scrappage policy. This, Modi said, will attract investment to the tune of ₹10,000 crore. The vehicle scrappage policy has been in the works since 2015. It provides incentives to owners of old, unfit and polluting vehicles to scrap them and make the roads cleaner, and reduce raw material costs for manufacturers. Union Minister for <keyword id="61316" type="ORGANIZATION" weightage="20" keywordseo="Road-transport">Road Transport</keyword> and Highways, Nitin Gadkari, said that this policy has the potential to cut down raw material costs by 40%. This could eventually lead to a reduction in prices of vehicles for customers. The scheme will be kickstarted with government vehicles that are 15 years and older, by April 2022. It will be expanded to unfit heavy commercial vehicles from 2023, and personal vehicles older than 20 years will be covered from June 2024. <cmsannotation type="cmsannotation" annotationid="Buyers can expect discounts, other incentives" comment="subhead" text="Buyers can expect discounts, other incentives">Buyers can expect discounts, other incentives</cmsannotation> Automobile customers can also expect some rationalisation in the prices of vehicles, but the extent of benefits that the manufacturers pass on to buyers eventually is not known yet. “The association of automobile manufacturers is also going to offer some discount on the purchase of new vehicles and the certificate of deposit for the scrapped vehicles,” said Giridhar Aramane, secretary in the <keyword id="168381" type="ORGANIZATION" weightage="20" keywordseo="ministry-of-road-transport">Ministry of Road Transport</keyword> and Highways. In addition to this, Aramane added that buyers will benefit from a 25% reduction in road taxes, and a complete waiver of registration fees when purchasing a new vehicle next time. <cmsannotation type="cmsannotation" annotationid="Vehicle scrappage policy to benefit various stakeholders" comment="subhead" text="Vehicle scrappage policy to benefit various stakeholders">Vehicle scrappage policy to benefit various stakeholders</cmsannotation> The government believes that this policy will help generate employment for 35,000 people at vehicle fitness centres and scrapyards. A Grant Thornton report dated August 11 said that this policy will result in benefits for several sectors. "Be it generating employment, reducing pollution, or accelerating demands for electric vehicles, the policy proves to be a win-win situation for the auto industry and various other stakeholders," the report said. The report added that the metal recycling business will be one of the major gainers. "One of the key opportunities that will emerge from the vehicle scrappage policy will be for the metal recycling business. It will also to an extent reduce the cost of production. Steel is a crucial component for automobile manufacturers, and its price has been growing up to almost 30% in the last six months," said Saket Mehra, Partner and Automotive Sector Leader, Grant Thornton Bharat. <cmsannotation type="cmsannotation" annotationid="Scrapping industry unorganised in India" comment="subhead" text="Scrapping industry unorganised in India">Scrapping industry unorganised in India</cmsannotation> Stating that the scrapping industry in India is unorganised and uses manual labour to dismantle machinery, Aramane said that this leads to serious economic loss. Official estimates <a href="https://timesofindia.indiatimes.com/business/india-business/vehicle-scrapping-policy-to-offer-about-5-rebate-on-new-cars-nitin-gadkari/articleshow/81569841.cms">suggest</a> that there are over 10 million motor vehicles in the country, which are either older than 15 years or don’t have fitness certificates. “We want to modernise this process through a modern automated scrapping centre where vehicles will be deregistered before scrapping with the help of regional transport offices (RTOs), component by component, which can generate better value. This will reduce raw material costs, increase the availability of raw materials such as rare earths and other metals,” Aramane added. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/ola-scooter-launch-date-set-for-august-15/articleshow/84997219.cms">Ola Scooter launch date set for August 15 – here’s everything you need to know</a> <a href="https://www.businessinsider.in/business/auto/news/simple-energy-launching-one-electric-scooter-on-august-15-check-out-booking-price-battery-specification/articleshow/85268668.cms">Simple One electric scooter pre-bookings begin August 15 – check out the booking price, battery specs and more</a> <a href="https://www.businessinsider.in/business/auto/news/simple-energy-new-electric-scooter-promises-240km-range-on-a-70-minute-charge/articleshow/84164967.cms">This new electric scooter promises 240KM range on a 70-minute charge, could be priced under ₹1,20,000</a>

Indian government announces vehicle scrappage policy, aims to generate 35,000 jobs and attract ₹10,000 crore investment

The road transport ministry has proposed to retire nearly 28 million vehicles that were purchased before 2005, but the central government has, for the time being, put the proposal on hold. 
 
In its concept note 'Voluntary Vehicle Fleet Modernisation', the road transport ministry had proposed that buyers who buy a new vehicle after surrendering old one be given a cut in excise up to 50%, while offering fair value for the scrap material and discounts by auto manufacturers. 
 As per estimates, this would have cut the new vehicle’s cost by as much as 812%. However, the government told the Supreme Court that a <keyword id="3475779" type="UNKNOWN" weightage="100" keywordseo="voluntary-vehicle-scrapping-policy">voluntary vehicle scrapping policy</keyword> was being planned to beat vehicular pollution. 
 
Also, the finance ministry has indicated that rather than giving excise tax rebate, one could also explore the option of giving upfront cash incentive to people who are ready to scrap their old vehicles. 
 
"In cash incentive option, there'll be a cap on the amount. The excise cut could benefit bigger vehicles more than smaller ones," a government source told <a href="http://economictimes.indiatimes.com/news/economy/policy/plan-to-scrap-28-million-pre-2005-vehicles-takes-a-hit/articleshow/53093197.cms">ET</a>. 
 
Experts also think that even though the road transport ministry claims that this policy would reduce annual emission by 25-30% and annual oil consumption by 3.2 billion litres, it is actually being done to increase vehicle sales. 
 
<a href="http://www.team-bhp.com/forum/iipcache/122247.jpg">Image source</a>

Government puts emergency brakes on its plan to scrap 28 million vehicles from before 2005

New Delhi, May 10 () The much-awaited vehicle scrappage policy would help in curbing air pollution, reducing fuel consumption and curtailing fatalities in road accidents, while generating demand for new vehicles in the country amid the coronavirus pandemic, industry sources said. The proposed scrappage policy requires support from both the central and state governments, an industry source said. The governments at both levels would need to come together to make this programme successful by providing fiscal incentives for fleet modernisation, another industry source added. An incentive based mechanism will make the scheme lucrative and encourage people to scrap their old vehicles and replace them with new ones, he added. When contacted over the matter, SIAM President Rajan Wadhera told that the industry body has been engaging with the Government of India, requesting for an incentive-based scrappage policy with monetary incentives in the form of 50 per cent rebate in GST, road tax and registration charges. Similarly, SIAM Director General Rajesh Menon said an incentive based policy will help in mitigating pollution, improving road safety and conserving fuel. "And more importantly in the current context of impact of COVID 19 on the Indian auto sector, also could kickstart demand," he added. A vehicle scrappage policy is in the works for some time now. The policy aims to put a cap on the life of vehicles in terms of years run. Last week, Union Minister Nitin Gadkari had said that the scheme is likely to be finalised soon to boost the automobile sector. The proposed policy once approved, will be applicable on all vehicles including two and three-wheelers. Earlier, the policy was sent for a fresh round of consultation with stakeholders on the direction of the Prime Minister's Office. Gadakri had earlier said that once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping, like steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by "20-30 per cent". The government on July 26, 2019 had proposed amendments to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electric vehicles. In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current time-frame of one year. The notification also provided that newly purchased motor vehicles will be exempted from payment of fees for registration certificate and assignment of new registration mark, if the purchaser produces scrapping certificate of the previously-owned vehicle of the same category issued by the authorised scrapping centre/agency. The government had first floated a draft voluntary vehicle fleet modernisation programme in May 2016, that proposed to take 28 million decade-old vehicles off the road. MSS RVK

'Vehicle scrappage policy to help generate demand for new vehicles amid coronavirus pandemic'

New Delhi, Feb 1 () A policy for scrapping of old vehicles "is in the works" and will be announced after concerned ministries "fine tune" it, Finance Minister Nirmala Sitharaman said on Saturday.
 The much-awaited vehicle scrappage policy is awaiting final clearance from the Union Cabinet and would focus on eliminating the fleet of old polluting commercial vehicles plying on the country's roads.
 "Scrappage policy is in the works ... I would wait for the concerned ministries also to fine tune everything and tie up the loose ends and then come to a stage where it can be announced by the ministry," Sitharaman said in an interaction with the media after presenting Budget 2020-21.
 "So many things depend on how far they are mature and right for me to use it in the budget, but that does not mean because I've not announced it in the budget no work is going on in that area," she added.
 The proposed policy, once approved, will be applicable on all vehicles including two- and three-wheelers.
 Earlier, the policy was sent for a fresh round of consultation with stakeholders on the direction of the PMO.
 Road Transport and Highways Minister Nitin Gadakri had earlier said that once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping like steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by "20-30 per cent".
 The government on July 26, 2019 had proposed amendments to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.
 In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current time-frame of one year.
 The notification also provided that the newly purchased motor vehicles will be exempted for payment of fees for registration certificate and assignment of new registration mark, if the purchaser produces scrapping certificate of the previously-owned vehicle of the same category issued by the authorised scrapping centre/agency.
 In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road.
 A committee of secretaries (CoS) recommended to the ministry redesigning of the scheme for greater participation of states with partial support from the Centre.
 The CoS had suggested that the scheme may dovetail a calibrated and phased regulatory approach for capping the life of vehicles together with stricter implementation of emission norms and accordingly a revised consultation paper got in-principle nod of the PMO. DP NAM ABM

Vehicle scrappage policy to be announced after fine-tuning by concerned ministries: FM

If you are planning to junk your old car, there is a possibility that the government will offer discount up to 15% on new vehicles. 
 
The road transport and highways ministry has prepared a policy under which anyone voluntary scrapping their four-wheelers older than 12 years (pre-Bharat stage II vehicle) will get up to 15% discount (including manufacturer discount and rebate on excise duty) on new vehicles. 
 
This proposal comes amid automakers are hiking car prices after <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley">Finance Minister Arun Jaitley</a> announced a ‘green tax’ in his <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2016">Budget 2016-17</a>. 
Under the proposed policy, commercial and passenger vehicles will be covered and while junking, a certificate will be issued. 
 
Reportedly, there are more than 40 lakh Pre BS-II four-wheeler vehicles in both commercial and passenger segment in India. 
 
This is a plan under modernisation of fleet as Pre-BS II vehicles are almost 10 times more polluting than BS V vehicles. 
 Meanwhile, <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> India, Mercedes Benz, Honda Cars India, <keyword id="596" type="CITY" weightage="20" keywordseo="Hyundai">Hyundai</keyword> Motors and <keyword id="42747" type="CITY" weightage="20" keywordseo="Tata-Motors">Tata Motors</keyword> are hiking their car prices due to green tax. 
 
READ MORE: <a href="http://www.businessinsider.in/Maruti-Suzuki-and-Mercedes-are-hiking-car-prices-thanks-to-green-tax/articleshow/51236111.cms">Maruti Suzuki and Mercedes are hiking car prices, thanks to green tax</a> 
 
However, smart hybrid models are exempted from the tax net. 
 
Honda Cars India also plans to raise prices in a range of Rs 4,000 to Rs 80,000. 
 
The infrastructure cess of 1-4 per cent proposed in the Budget will make cars pricier by Rs 2,000-80,000 for the mainstream models and up to Rs 4-5 lakh for luxury vehicles. 
 
Hyundai Motor is also raising prices from Rs 3000 on small car Eon to Rs 80000 on SUV Santa Fe. 
 
The government is going to impose 2.5 percent cess on diesel vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,500 cc, while a cess of 4 per cent was imposed on higher engine capacity SUVs and bigger sedans. 
 
(Image: Indiatimes)

The Govt is offering discounts up to 15% on new cars to encourage people to dump their old ones

If you think you will be getting sops while replacing your old car with a new one, read the fine print that government has just added. 
 
The Indian government is planning not to give sops to those buying fuel-guzzling vehicles. 
 Reportedly, cars and utility vehicles having a <keyword id="724307" type="UNKNOWN" weightage="20" keywordseo="fuel-economy">fuel economy</keyword> below 14 km per litre, as certified by the Automotive Research Association of India (ARAI), won’t get benefit. 
 
It is likely that big SUV buyers will be left out of the bracket as majority of the cars in India have fuel efficiency in excess of 25 km per litre. 
 
As per the proposed Voluntary Vehicular Fleet Modernisation Policy (V-VMP), vehicles bought before April 2005 or those below BS IV emission standards will be eligible for incentives if replaced by new ones. 
 
"Details of the plan are yet to be worked out. However, one thing is certain that the incentives won't be offered on fuel-guzzling cars. Otherwise, the motive of this policy would be defeated. Some minimum threshold of fuel efficiency would be worked out. It could be 13-14 km per litre,” a source told ET. 
 
The Indian road transport ministry had unveiled a draft of the proposed V-VMP, which suggests complete excise exemption for state transport buses to encourage public transport to shift to newer and higher capacity buses which will also help decongest roads. 
 
Those opting for V-VMP will have to deposit documents relating to the vehicle at the recycling centre. After verification, the owner will get a V-VMP certificate and the price for the scrap. Then he has to provide the certificate to the dealer while buying the new vehicle to avail of the discount.

The govt is planning to add a new clause and you may not get any sop for replacing your old car

New Delhi, Dec 20 () Union Minister Nitin Gadkari on Friday said he will not allow driverless cars in India, which has a shortage of 22 lakh drivers.
 Speaking at an Assocham event here, the road transport and highways minister said, "Many times I am asked what about driverless car? Then I say till the time I am transport minister, you forget that. I will not allow driverless car to come in India."
 Stating that India has a shortage of 22 lakh drivers, Gadkari said there was a need for growth of employment as well as industry in the country.
 The minister also said vehicle scrappage policy was at the final stage, adding that "if we bring it then 100 per cent our cost will be reduced because raw material will be cheap and India will be world's number one manufacturing hub with regard to automobile manufacturing, e-vehicle...And if this happens then definitely it will contribute a lot to (USD) 5 trillion economy."
 The automobile industry at present is a Rs 4.5 lakh crore industry, the minister said.
 In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road.
 A committee of secretaries (CoS) recommended to the ministry to redesign the scheme for greater participation of states with partial support from the Centre.
 The CoS had suggested that the scheme may dovetail a calibrated and phased regulatory approach for capping the life of vehicles together with stricter implementation of emission norms and accordingly a revised consultation paper got in-principle nod of the PMO.
 The government had in July this year proposed amendments to the motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electric vehicles. In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current timeframe of one year.
 The notification also provided that newly purchased motor vehicles will be exempt from payment of fees for registration certificate and assignment of the new registration mark if the purchaser produces scrapping certificate of the previously owned vehicle of the same category. SID ABM

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Indian government announces vehicle scrappage policy, aims to generate 35,000 jobs and attract ₹10,000 crore investment

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Government puts emergency brakes on its plan to scrap 28 million vehicles from before 2005

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'Vehicle scrappage policy to help generate demand for new vehicles amid coronavirus pandemic'

PTI

Vehicle scrappage policy to be announced after fine-tuning by concerned ministries: FM

PTI

The Govt is offering discounts up to 15% on new cars to encourage people to dump their old ones

BI India Bureau

The govt is planning to add a new clause and you may not get any sop for replacing your old car

BI India Bureau

Will not allow driverless cars in India: Gadkari

PTI

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