Union Minister Nitin Gadkari today inaugurated the first government-approved scrapping and recycling unit for End-of-Life Vehicles (ELVs) of Maruti Suzuki and Toyota Tsusho Group in Noida. Spread over 10,993 square meters, the plant is being operated by Maruti Suzuki and Toyotsu India Pvt Ltd, where old vehicles will be scrapped and recycled.
This scrappage plant, built at a total cost of Rs 44 crore, has been prepared according to the vehicle scrappage policy of the Centre. This scrappage site will have a capacity to scrap 2,000 vehicles per month and it will take a little over 3 hours to scrap a single vehicle. Addressing the event during the launch of this unit, Nitin Gadkari said, “Scrappage policy will be one of the major factors to control pollution. Old cars cause a lot more pollution than new cars, so they need to be phased out. We expect sales to grow by 10-12 per cent due to the scrappage policy.”
Gadkari also said that “the Center is planning to start at least one such vehicle recycling or scrapping center in every district of the country. Such a move will not only ease the process of dismantling old cars but also more Employment will also be created, the economy will get a boost and it will also help in reducing vehicular pollution.”
Kenichi Ayukawa, MD & CEO, Maruti Suzuki India Limited said, “Like many countries, we need a policy where vehicle fitness is checked every 3-4 years. We need to wait 15 years. Not there.”
Gadkari further said that “The annual turnover of the auto sector is around Rs 7.5 lakh crore. The target is to take it to Rs 15 lakh crore in 5 years. India’s target is to have net-zero emissions by 2070 and This is very important for us.I am sure the scrappage policy will help a lot.
What is Vehicle Scrappage Policy:
Let us tell you that Prime Minister Narendra Modi launched the National Automobile Scrappage Policy in the month of August this year. The National Vehicle Junk Policy will be implemented from April next year. The Vehicle Scrutiny Policy Rules, which can also be called the Central Motor Vehicles (23rd Amendment) Rules, 2021, are very much conscious of the government and are expected to be implemented from April 1, 2022.
You need to know that, Vehicle Scrappage Policy is completely voluntary and as per this scrapping policy, old and unserviceable vehicles are to be phased out. For this, it will be mandatory for personal vehicles to undergo fitness tests at automatic centers after 20 years, while commercial vehicles will have to undergo tests after 15 years.
The policy has fixed a limit of 20 years for private vehicles and 15 years for automated fitness tests for commercial vehicles. If the owners decide to scrap such old vehicles, a 5 per cent incentive can also be availed on buying a new vehicle through this policy.
Unsuitable vehicles will not be registered:
Vehicles not meeting the prescribed standards will not be registered with the Regional Transport Office (RTO). Owners of vehicles older than 15 years will have to pay 8 times more for registration renewal. In this policy, an amount of Rs 5,000 has been fixed as renewal fee for cars older than 15 years. Similarly, to renew the registration of a 15 year old bike, you will have to spend Rs 1,000 which is currently only Rs 300.
On the other hand, renewing the registration for imported bikes and cars will be more expensive, with an expenditure of Rs 10,000 to Rs 40,000. Renewal of fitness certificate for public and commercial vehicles like buses or trucks older than 15 years will also cost 8 times more than the present one.
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