Chandigarh, December 1- While bringing the Prime Minister’s vision of considering the environment as a circular economy, Haryana is all set to introduce a five-year Vehicle Scrappage Policy. The policy has been formulated in sync with the Voluntary Vehicle Fleet Modernization Programme of Government of India to encourage the scrapping of the vehicles which have attained the critical age that is 10 years in case of diesel vehicles and 15 years in case of petrol vehicles.
The State Cabinet which met under the Chairmanship of Chief Minister, Sh. Manohar Lal here today has approved this Policy draft inspired by the idea of a circular economy that depends on the re-use, sharing and repair, refurbishment, remanufacturing, and recycling of resources to create a closed-loop system by minimizing the use of resources, the generation of waste, the pollution and carbon emissions.
The State Policy will be applicable to all end-of-life vehicles, Registered Vehicle Scrapping Facilities (RVSFs), Registering Authorities and departments who are supposed to issue a No Objection Certificate (NOC) for the registration of RVSFs.
Going from waste to wealth through a circular economy
Under this Policy, the vehicles which have completed the critical age of 10 years in the case of diesel vehicles and 15 years in the case of petrol vehicles shall be scrapped. An incentives-based system will be introduced to facilitate the phasing out the unfit vehicles. Furthermore, dis-incentives will be utilized to make use of old unfit vehicles, a costly affair.
The Policy also objectifies an increase in the State Exchequer by promoting the purchase of vehicles in replacement by motor vehicle owners. Monetary benefit will be given to the buyers of the motor vehicles to encourage them to scrape their vehicles.
Incentives, Exemptions or Monetary benefits
Under this Policy, the exemption in the Motor Vehicles Tax shall be available to the extent of 10 percent of the Motor Vehicle Tax chargeable or 50 percent of the scrapped value as mentioned in the certificate of deposit, whichever is lower.
The registration fee rebate will be given to the extent of 25 percent on the registration of a new vehicle purchased on the basis of the certificate of deposit.
Dis-incentives
After the critical age, a higher fitness fee shall be charged to the vehicles as per the Central Motor Vehicles Rules. Environment compensation charge and Road risk charge will be charged at the rate of Rs. 1 per CC of the vehicle at the time of its fitness testing for vehicles which have completed critical age, respectively.
All other transport services like transfer, hypothecation alteration, NOC etc shall be extended to the vehicles of critical age at a fee rate of Rs. 100 more than the fee rate for vehicles other than that of critical age.
Policy Process
The Registered Vehicle Scrapping Facilities (RVSF) shall be encouraged to be established purely through private investment. All applications to setup the facility shall be received on the National Single Window System (NSWS). All concerned departments of the State Government shall issue the permission, NoC within 30 days. The application shall be further processed by the Transport Department for the registration of RVSF.