Today in Noida, Nitin Gadkari, Union Minister inaugurated Maruti Suzuki and Toyota Tsusho Group’s first government-approved scrapping as well as recycling facility for ELVs (end-of-life vehicles). The facility which is spread over almost 10,993 sq. metres is being operated by Maruti Suzuki Toyotsu India Private Limited.
The scrappage plant which is estimated to be built with an investment of 44 crore INR is totally in accordance with the Centre’s Vehicle Scrappage Policy.
Every month the facility will have the maximum capacity to scrap 2,000 vehicles and will take a few more than three hours to scrap one vehicle.
Stating at the event, Gadkari said, “The scrappage policy will be one of the key factors to control pollution. Old cars are much more polluting than new ones, so they need to be phased out. We expect sales to grow 10-12 % due to scrappage policy.”
He also added, “Old vehicles cause pollution that’s a big problem for society. Scrapping is very important for the economy. We will get all raw materials at lower cost by which we can lower production cost.”
“Like many countries, we need a policy where fitness is checked for vehicles every 3-4 years. We don’t need to wait for 15 years,” stated by Kenichi Ayukawa who is the MD and CEO at Maruti Suzuki India Limited.
Gadkari also stated that the Centre is deciding to introduce at least a minimum number of such vehicle recycling or scrapping centres in almost every district of the nation. The minister further said that such a necessary move will not only make it easy to scrap old cars but also to make more employment, increase economy and help reduce car pollution.
Gadkari said, “The auto sector has an annual turnover of Rs. 7.5 lakh crore. Target is to take it to Rs. 15 lakh crore in 5 years. India aims to have net-zero emissions by 2070 & it’s very important for us. I’m confident that scrappage policy is one of the solutions.”
Gadkari also revealed that the government is seeking a proposal to give more tax-related concessions on cars that are bought after scrapping old vehicles. “The GST revenue of both the Centre and states will rise due to the scrappage policy… I will discuss with the finance ministry on how to provide more (tax-related) concessions under the new vehicle scrappage policy,” he further added.
Narendra Modi, Prime Minister had launched the National Automobile Scrappage Policy in August. The national vehicle scrappage policy will be into effect from April 2022. The vehicle scrappage policy rule are likely to be known as the Central Motor Vehicles (23rd Amendment) Rules, 2021, which will come into effect from April 1, 2022.
According to the voluntary vehicle scrapping policy that aims to phase out unfit and old cars and will make it compulsory for personal vehicles to do a fitness test in automated centres after 20 years while the commercial vehicles after 15 years.
If the owners decide to scrap such old cars, it will certainly offer a 5% incentive on buying aa new vehicle.
Vehicles that certainly do not meet the set standards will not be allowed to be registered with the Regional Transport Office (RTO). Owners of cars that are more than 15 years old will have to pay eight times extra to renew their registration. 5,000 INR has been fixed by the policy as the renewal fee for cars older than 15 years. Similarly, the fee to renew registration of 15-year-old bikes would take 1,000 INR compared to the ongoing fee which is 300 INR. For imported cars and bikes, the renewal registration will be a lot more costly. It has been fixed at 10,000 and 40,000 INR respectively.
The renewal of certificate of fitness for both public and commercial vehicles, such as bus or truck, which is older than 15 years will cost eight times more than the ongoing one as well. It may range between 10,000 and 12,500 INR.