Govt rolls out the vehicle scrappage policy said that it will reduce pollution and increase road safety; in an attempt to give a boost to the automobile manufacturing sector and lower carbon emissions.

As per the new policy, in case of failure to get a fitness certificate, commercial vehicles will be de-registered after 15 years, said Gadkari. Private vehicles will be de-registered after 20 years if found unfit or in case of a failure to renew registration certificates, 

1) Personal vehicles will be required to undergo a fitness test at government-certified fitness centres. Owners can scrap their vehicles anywhere in the country irrespective of their registration place.

2) The policy will not be applicable on vintage cars.

3) Appointment for fitness centres may be booked online. Test reports will be generated in an electronic mode.

4) In case of failure to obtain fitness certification or found unfit, vehicles will be de-registered.

5) The government also proposed that all vehicles of the central government, state government, municipal corporation, panchayats, state transport undertakings, public sector undertakings and autonomous bodies with the Union and state governments may be de-registered and scrapped after 15 years from the date of registration. The tentative date for scrappage of government and PSUs vehicles above 15 years of age is April 1, 2022.

6) The owners will be provided with a scrapping certificate after which they will be eligible for the incentives proposed under the scheme.

7) The incentives include scrap value for the old vehicle, which will be approximately 4-6% of the ex-showroom price of a new vehicle.

8) The state governments may be advised to offer a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles.

9) The vehicle manufacturers are also advised for providing a discount of 5% on the purchase of a new vehicle.

10) The registration fees may also be waived for the purchase of a new vehicle.

11) Green tax can be levied separately for renewal of registration, over and above the already existing road tax that every vehicle owner already pays. Green tax could be anywhere between 10-25% of the annual road tax.