The vehicle scrapping policy will be announced after an adjustment by the ministries concerned: Sitharaman

NEW DELHI: A policy for scrapping old vehicles is underway and will be announced after concerned ministries refine it, finance minister Nirmala Sitharaman said Saturday.

The long awaited vehicle scrapping policy awaits final approval from the Union Cabinet and would focus on eliminating the fleet of old pollutants Commercial Vehicles driving on the roads of the country.

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The scrapping policy is in process ... I would wait for the ministries concerned to also refine everything and tie up the loose ends and then reach a stage where the ministry can announce it, Sitharaman said in an interaction with the media after presenting the Budget 2020-21.

Many things depend on how mature they are and how appropriate it is for me to use it in the budget, but that does not mean that I have not announced it in the budget, there is no work in that area, he added.

The proposed policy, once approved, will be applicable to all vehicles, including two and three wheel vehicles.

Previously, the policy was sent for a new round of stakeholder consultations on the direction of the PMO.

Road and highway transport minister Nitin Gadakri had previously said that once the policy is approved, India could emerge as a center for car manufacturing since the key raw material available from scrapping such as steel, aluminum and plastic will be recycled, which will reduce car prices by 20-30 percent.

On July 26, 2019, the government proposed amendments to motor vehicle standards to allow the scrapping of vehicles older than 15 years in an attempt to stimulate the adoption of electric vehicles.

In a draft notification, the government proposed the renewal of certificates of fitness for vehicles older than 15 years every six months instead of the current one-year term.

The notification also stipulates that newly purchased motor vehicles will be exempt from the payment of fees for the registration certificate and the assignment of a new registration mark, if the buyer presents a certificate of scrapping of the used vehicle of the same category issued by the center Authorized scrapping agency/agency.

In May 2016, the government had submitted a draft of the Voluntary Vehicle Fleet Modernization Program (V-VMP) that proposed to take 28 million vehicles off the road a decade ago.

A secretaries committee (CoS) recommended that the ministry redesign the scheme for greater participation of the states with partial support from the Center.

The CdS had suggested that the scheme could fit into a calibrated and staggered regulatory approach to limit the useful life of the vehicles along with a stricter implementation of the emission standards and, consequently, a revised consultation document obtained in principle an approval of the PMO.