Economy

Scrapping policy: Govt plans centres to test vehicle fitness

Our Bureau New Delhi | Updated on February 05, 2021

For the voluntary scrapping policy for vehicles that is being introduced, the government will be setting up centres on a public private partnership (PPP) basis for automatically testing the fitness of vehicles.

Only those vehicles that do not pass the fitness test will be sent for scrapping. Vehicles will be tested after 15 years (for commercial vehicles) and 20 years (for private vehicles). A fiscal incentive for scrapped vehicles is in the works, which will be announced subsequently.

Due care will be taken to prevent conflict of interest, Road Transport Secretary Giridhar Aramane said at a press meet on Friday, when asked about potential conflict between companies involved in making vehicles and those involved in fitness testing and/or scrapping.

The scrapping policy is being introduced for users’ benefit, he said, adding that studies show that use of old vehicles increases the cost of operations. There is also the need to protect the environment in inland or hinterland cities of the country (coastal cities do not face that much of a problem).

In another move, the Road Ministry Secretary said the Centre will be finalising a cashless treatment scheme for all accident victims soon along with various insurance companies and other stakeholders. This is likely to be done by the National Health Authority, under the Pradhan Mantri Jan Arogya Yojana.

Aramane also said that the next round of infra investment trust for the road sector is likely to be launched early next financial year.

Published on February 05, 2021

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