Dear
Shri Gadkariji ,
My last E-Mail to you in the matter of
( proposed ) VEHICLE SCRAPPAGE
POLICY , was :
In that
e-mail, I had raised 17
QUESTIONS which required clarifications, for satisfactory implementation
of the policy, whenever announced
You announced
that policy yesterday
Many thanks
for,
Ø > Providing clear answers to MOST ( but not ALL ) of the
questions raised by me
in my last e-mail
Ø > Incorporating a number of SUGGESTIIONS
which I made in my earlier 18
E-
MAILS , starting first on 27 March 2016
With regards
Hemen Parekh / hcp@RecruitGuru.com / 19
March 2021
===================================================
SOURCES :
Ø Vehicle
scrappage policy may come with tax breaks
/ Business Line / 19
March
Ø Government
announces voluntary scrappage scheme for vehicles, Gadkari seeks GST rebate /
Business Today / 19 March
Ø
Certificate
to incentives, govt gives scrappage policy details /
Hindustan Times / 19 March
POLICY HIGHLIGHTS :
[ A ] ………. Process
Ø A Vehicle older than 20 years, if found unfit
or registration certificate is not renewed, will be de-registered
Ø Registered owners to handover such vehicles to
a Registered Vehicle scrapping Facility, with certificate of the vehicle’s
registration, their PAN details and other documents
Ø Scrappers to verify records of the vehicle
from the database of stolen vehicles and issue a Certificate of Deposit,
mandatory for the owner to avail incentives
Ø The certificate once used will be stamped “
Cancelled “ by the agency
Ø Government will maintain a database of the
vehicles scrapped every year
[ B ]…………Incentives for Vehicle Owners
Ø Scrap Value
#
4-6 % of ex-showroom price of new vehicle to be given to the owner by
the Scrapping Centre
Ø Tax Rebate
#
States may be advised to offer a road-tax rebate of up to 25 % for Personal Vehicles and up to 15 % for
Commercial Vehicles
Ø Discount on New Vehicles
#
Vehicle Manufacturers will be
advised to give 5 % discount on new vehicles against a scrapping certificate
Ø Fee waiver
#
Registration fees may also be waived for purchase of new vehicle against
the scrapping certificate
VEHICLE
POPULATION STATISTICS :
Ø Medium and Heavy COMMERCIAL VEHICLES
# Older than 15 years without any valid FITNESS
certificate
17 lakhs
Ø Light Motor Vehicles
# Older than 20 years…………………………………………. 51 lakhs
# Older than 15 years( but less than 20 years ).…34
lakhs
Ø Average Age
# Commercial Vehicles……………………………. 10 + years
# Private Vehicles……………………………………. 10 – 15 years
SHRI
GADKARIJI SAID :
Ø It is proposed that commercial vehicles be
deregistered after 15 years in case of failure to get the fitness certificate. As
a disincentive measure, increased fees for fitness certificate and fitness test
may be applicable for Commercial vehicles 15 years onwards from the date of
initial registration
Ø It is proposed that private vehicles be
deregistered after 20 years if found unfit or in case of a failure to renew
registration certificate. As a disincentive measure, increased re-registration
fees will be applicable for private vehicles 15 years onwards from the date
initial registration
Ø It is being proposed that all vehicle of the
Central Government, State Government, Municipal Corporation, Panchayats, State
Transport Undertakings, Public Sector Undertakings and autonomous bodies with the
Union and State Governments may be de-registered and scrapped after 15 years
from the date of registration
Ø The scrapping policy will lead to a new
investment of around Rs 10,000 crore and create 35,000 jobs. The policy will
cover an estimated 5.1 million ( 51 lakh ) light motor vehicle ( LMV : mostly
cars ) that are above 20 years of age, while another 3.4 million ( 34 lakh )
LMVs are above 15 years. It will also cover 1.7 million ( 17 lakh ) Medium and
Heavy motor vehicles ( trucks, buses, commercial vans), that are above 15
years, and currently without valid fitness certificates
Ø The scheme
shall provide strong incentives to owners of old vehicles to scrap old and
unfit vehicles through registered scrapping centres, which shall provide the
owners with a scrapping certificate
INDUSTRY REACTIONS
:
Ø Maruti Suzuki Chairman, Shri R C
Bhargav :
Policy
is unlikely to help increase vehicle sales in the short term, as the
implementation process and the creation of requsite infrastructure will take
time
Nothing
can happen in the next 3 years. However, one of the results of the policy will
be that it will result in the creation of a RECYCLING INDUSTRY which will
generate investments and employment
Why
should a person be rewarded for scrapping an unfit vehicle ?
Current
Policy Guidelines are not adequate. Fitness needs to be certified more
frequently.
Ø SIAM ( Society of Indian Automobile
Manufacturers ) spokesperson :
SIAM
will work on this front with the government . Mandatory scrapping of 15 + years
old government vehicles from 01 April 2022, is a step in the right dirction
SIAM
would work together on the scheme in greater detail with the ministry on issues
such as ,
# The best way to expedite TESTING
INFRASTRUCTURE in a sustainable and scalable manner
# The possibility of starting the fitness
testing much earlier in the life cycle of the private vehicle as is done in
developed countries
# The scope of mandatory fitness based de-registration
vs voluntary incentive/dis-incentive based scrapping and incentives for
encouraging scrappage
================================================
For providing a " Proof of a Revolutionizing Concept "