Vehicle scrapping unit to come up in Industrial Area, Phase 1 in Chandigarh

Tribune News Service

Chandigarh, December 6

Now, old vehicles will no longer occupy space in your backyard.

The State Transport Authority (STA) has given its approval to the setting up of a vehicle scrapping centre in the Industrial Area, Phase 1, under the National Vehicle Scrappage Policy.

According to the policy, commercial vehicles aged over 15 years and passenger vehicles aged over 20 years will have to be mandatorily scrapped if these do not pass the fitness and emission tests.

The UT Administration had implemented the notification issued by the Ministry of Road Transport and Highways from April 1 and decided to grant a rebate of up to 25 per cent on the road tax on the registration of a new vehicle under the policy.

The policy has a provision of concession in the motor vehicle tax on the purchase of a new vehicle against submission of the certificate of deposit (CD), which will be issued by the registered vehicle scrapping facility (RVSF) to the owner of a vehicle when he/she deposits the vehicle with it for scrapping.

The concession in tax up to 25 per cent will be given in case of non-transport vehicles and up to 15 per cent in case of transport vehicles. However, the concession will be available up to eight years in case of transport vehicles and up to 15 years in case of non-transport vehicles. There will be no concession in the motor vehicle tax after the expiry of the period concerned.

The policy extends many benefits, which can help reduce the price of new vehicles such as a manufacturer can give up to 5 per cent discount on a new vehicle, zero registration fee on the purchase of a new vehicle, owners can receive scrap value equivalent of 4 to 6 per cent of ex-showroom price of a new vehicle and the states can give up to 25 per cent and 15 per cent rebate on the road tax for personal and commercial vehicles, respectively.

According to the Ministry of Road Transport and Highways, India has 2.1 crore vehicles older than 20 years.

An STA official said a private firm had been given approval to set up the centre, which would be made operational from April 1 next year.

Incentives for scrapping old vehicles

• Manufacturers can give up to 5 per cent discount on new vehicle
• Zero registration fee on purchasing a new vehicle
• Owners can receive scrap value equivalent of 4 to 6 per cent of ex-showroom price of a new vehicle

Concessions in motor vehicle tax

• Up to 25% for non-transport vehicles (available up to 15 years)
• Up to 15% for transport vehicles (available up to eight years)

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