Voluntary Vehicle Modernization Program
Kartavya Desk Staff
Syllabus: Environment Conservation/ Economy
Source: PIB
Context: The Ministry of Road Transport and Highways has launched the Voluntary Vehicle Modernization Program, also known as the Vehicle Scrapping Policy.
Aim: The policy aims to voluntarily scrap unfit commercial and passenger vehicles based on fitness, not age. It phases out polluting vehicles through Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). Manufacturers will offer discounts for up to two years against a Scrappage Certificate.
Other major points:
• Incentives for Scrapping: Discounts will be offered to encourage the scrapping of End-of-Life Vehicles, promoting safer, cleaner, and more efficient vehicles on the roads.
• Commercial Vehicles: Discounts of up to 3% of the ex-showroom price for vehicles over 3.5 tonnes GVW, and 1.5% for vehicles under 3.5 tonnes GVW.
• Passenger Vehicles: Discounts of 1.5% of the ex-showroom price or Rs 20,000, whichever is less, for vehicles scrapped in the last six months.
• Additional Government Incentives: These discounts are in addition to scrap value, Motor Vehicle tax concessions, fee waivers for registration certificates, and other incentives linked to the Scrappage Certificate.
What is the vehicle scrapping policy?
The Vehicle Scrappage Policy is a government-funded programme to scrap old and unfit vehicles and replace them with modern and new vehicles on Indian roads. The primary goal of the policy is to create an ecosystem for phasing out unfit and polluting vehicles to achieve a lower carbon footprint in the country.
Significance of Vehicle Scrappage:
• Eco-friendly Development: Promotes the phasing out of unfit vehicles, supporting a sustainable circular economy.
• Economic Impact: Expected to attract Rs 10,000 crore in investments and create 35,000 jobs.
• Pollution Reduction: Can lower vehicular emissions by 15-20%; old vehicles emit significantly more pollutants.
• Improved Fuel Efficiency: Reduces maintenance costs.
• Industry Benefits: Provides low-cost raw materials and formalizes the scrappage ecosystem.
Challenges:
• Inadequate Scrapping Facilities: Only 60+ RVSFs and 75+ ATSs are operational across the country.
• Hazardous Waste Disposal: Informal sector involvement without modern equipment poses environmental and health risks.
Other initiatives to curb vehicular pollution:
Initiative | Description
Go Electric Campaign | Promotes the adoption of electric vehicles (EVs) and encourages the use of electric cooking and other appliances.
FAME India Scheme Phase II | Provides financial incentives for the adoption of electric vehicles, focusing on public transportation and charging infrastructure.
Electric Vehicles (EV) Policy 2020 | Delhi’s policy aims to accelerate the adoption of EVs by providing subsidies, creating charging infrastructure, and promoting battery recycling.
Hydrogen Fuel Cell-Based Bus and Car Project | Develops and deploys hydrogen-powered vehicles to reduce emissions and promote clean energy in transportation.
National Electric Mobility Mission 2020 | Aims to achieve national fuel security by promoting hybrid and electric vehicles and establishing manufacturing hubs.
Insta Links:
• Vehicle scrappage policy