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The companies, which set up Registered Vehicle Setting Facility (RVSF), shall be provided access to the VAHAN database (government’s online vehicle register).
They shall be authorised to make entries regarding scrapping vehicles and issuing Scrapping Certificate, according to the draft rules notified by the Road Transport and Highways Ministry for setting up Registered Vehicle Scrapping Facility (RVSF).
Road Transport Ministry has invited comments from stakeholders on these rules within 30 days.
Companies eyeing the space to set up RVSF include original equipment manufacturers (OEMs) like Maruti Suzuki, and Tata Group, say official sources.
The RVSF must take cyber-security certifications for safe access to VAHAN database. The registration of an RVSF shall be valid for an initial period of 10 years, and renewable for 10 years at a time, say the rules.
The rules lay down the procedure for setting up, authorising and operating RVSFs, allowing them to access National Crime Records Bureau and police database for verifying stolen vehicle or vehicle involved in criminal activity, before scrapping a vehicle.
Technical requirements
The Union government will develop a portal for single window clearance, on which the applicant will apply with documents and fee. State or Union Territory governments would clear the proposal in a time-bound manner, that is, 60 days, said an official release.
The application process is proposed to be made seamless, transparent and time-bound for registration, inspection and audit of RVSF.
Scrappage policy will promote safer, cleaner vehicles, says auto industry
Besides having certified equipment for de-polluting, de-risking and dismantling End of Life Vehicle (ELV), the RVSF will have to comply with relevant health and safety legislation or regulations and environmental norms laid down by Environment Ministry and the Pollution Control Boards for such operations.
In case the RVSF does not have adequate capability for recycling of hazardous waste (like e-waste, batteries, or for recovery of rare earth metals), then such materials can be sold to duly authorised recyclers.
Certificate of deposit
The RVSF, after verifying the original documents from the owner or representative and records of the vehicles, issues the ‘Certificate of Deposit’, which can be used to avail incentives and benefits for purchase of a new vehicle.
The voluntary vehicle fleet modernisation programme or the vehicle scrapping policy, announced by Road Transport and Highways Minister Nitin Gadkari on Thursday, proposes such fiscal incentives on purchasing a new vehicle against vehicle scrapped in registered scrapping centres.
Vehicle scrappage policy may come with tax breaks
But the final word on lower road taxes lies with the States, and on lower GST or other fiscal incentives lie with the Finance Ministry and GST Council. “We have advised States and Centre to provide such incentives,” Gadkari said in the conference on Thursday.
Finance Minister Nirmala Sitharaman had announced in the Budget on India’s plan to have a voluntary vehicle scrapping policy for 15-year-old commercial vehicles and 20-year-old private vehicles.
The RVSF shall keep a cut piece of Chassis Number for six months safe custody from the date of issue of ‘Certificate of Vehicle Scrapping’ and maintain a copy of all documents for record and examination during audit. Objections and suggestions to these draft rules have been invited within 30 days from the date of publication of these draft rules, stated the release.
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