Scrap your old vehicle, don’t pay a registration fee for the new one

Our Bureau New Delhi | Updated on July 27, 2019

Ministry moots having authorised scrapping agencies to enable waiver

In a move that could spur the mushrooming of vehicle scrapping agencies across the country, the Road Transport and Highways Ministry has proposed in a draft policy that buyers would not have to pay registration fees for new vehicles if they present a scrapping certificate.

The certificate, however, has to be issued by an “authorised scrapping agency”.

Curbing pollution

The scrappage policy has been in the works for the several years now, with an aim to curb vehicular pollution by scrapping old commercial vehicles that emit toxic gases.

The draft notification says a newly purchased vehicle shall be exempted from paying registration fees if it is presented for registration along with the scrapping certificate of a previously owned vehicle of the same category issued by an authorised scrapping centre/agency, and the scrapping certificate has not been utilised for any other such cases in the past.

Also, the ministry has proposed to revise charges upwards for renewing registration certificates and newer registration marks.

Fitness certificates for transport vehicles older than 15 years have to be renewed more frequently — every six months against one year under current norms.

The ministry has also invited comments for amending the rules under the Motor Vehicles Act for providing a boost to electric vehicles and ensuring user-friendly features for the differently abled in buses.

For the differently abled, the ministry has proposed priority seats, signs, securing of crutches, walkers and hand rails. Fitness certificates for buses will be issued only if they have these features built in.

Mahindra venture

Mahindra, in association with Metal Scrap Trade Corporation Ltd (MSTC), has already set up scrappage centres. Mahindra Accelo (a fully owned subsidiary of Mahindra) has formed a joint venture with MSTC for this business under a new brand, CERO (Mahindra MSTC Recycling Pvt Ltd).

Mahindra (CERO) is the first government authorised scrappage centre in India, said the firm. “We have the power to certify the owners of scrapped vehicles,” said a company spokesperson.

For a while now, automobile firms have been seeking a scrappage policy, as they expect it to act as a trigger for auto sales.

Published on July 26, 2019

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