Article
link: Commercial Vehicle Scrappage Policy
Extract from the article:
The voluntary vehicle fleet modernization
program, known as the Scrappage Policy, initiated in March 2021, is progressing
in stages since April 1 of the same year.
By August 31, 2024, the registered vehicle
scrapping facilities (RVSFs) had received approximately 44,803 private and
41,432 government scrap applications.
This policy aims to incentivize the replacement
of old vehicles with new ones to enhance environmental sustainability and
overall efficiency in the commercial vehicle sector.
The implementation of the Scrappage Policy
highlights the importance of encouraging individuals and organizations to
participate actively in the scrappage process to improve the nation's vehicle
fleet quality and reduce emissions.
The low number of applications suggests a need
for further awareness and incentives to drive more significant participation in
this crucial modernization initiative.
My Take:
Vehicle Scrapping Centres: Interest Plenty /
Action Scanty
In my blog from June 29, 2023, titled
"Vehicle Scrapping Centres: Interest Plenty / Action Scanty," I
highlighted the necessity of establishing a substantial number of scrappage
centers, ranging from 1,500 to 2,000, to efficiently execute the scrappage
policy.
The current scenario, with only about 16-18
centers operational, reflects the limited progress in this area. The
government's discussions with the Finance Ministry to provide incentives for
new vehicle purchases or old vehicle scrapping align with the urgency I
emphasized regarding the need for concessions to drive participation in vehicle
modernization efforts.
Moreover, in my blog entry dated August 29, 2023,
titled "Using Recycled Materials in New Vehicles," I discussed the
challenges associated with implementing vehicle scrapping programs due to
insufficient infrastructure levels.
Emphasizing the operationalization of scrapping
units and testing centers, I pointed out that proper infrastructure is key to
the success of any scrappage policy. The current data on the operational
registered scrapping facilities and the critical need for more facilities echo
the concerns I raised about infrastructure readiness and capacity in my
previous writings.
Call to Action:
To the Ministry of Road Transport and Highways
and stakeholders involved in the Scrappage Policy implementation, I urge a
concerted effort to enhance awareness and streamline incentives to boost
private and government applications for vehicle scrapping.
It is essential to expedite the establishment of
registered scrapping facilities and testing centers to meet the target of
1,500-2,000 centers for effective implementation of the Scrappage Policy,
thereby fostering a sustainable and modernized commercial vehicle sector.
With regards,
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