Haryana all set to bring policy on phasing out old vehicles

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Chandigarh, December 1

Haryana is all set to introduce a policy to phase out old vehicles. This is in sync with the Voluntary Vehicle Fleet Modernisation Programme of the Centre to encourage the scrapping of vehicles that have attained the critical age of 10 years in case of diesel vehicles and 15 years in case of petrol vehicles. But it will be voluntary and not mandatory.

Buyers to get benefit to encourage scrapping of their old vehicles

Incentives

• Exemption in motor vehicle tax
• Registration fee rebate

Disincentives

• Fitness fee, other transport services to cost more
• Eco compensation to be charged

The state Cabinet under CM Manohar Lal Khattar today approved this policy draft. The policy will be effective for five years after its notification in the official gazette. The state policy will be applicable to all end-of-life vehicles, Registered Vehicle Scrapping Facilities (RVSFs), registering authorities and departments which are supposed to issue a no-objection certificate (NOC) for the registration of RVSFs.

An incentives-based system will be introduced to facilitate the phasing out of unfit vehicles. Furthermore, disincentives will be put in place to make the use of old unfit vehicles a costly affair.

Monetary benefits will be given to the buyers of vehicles to encourage them to scrap their old vehicles. Under this policy, exemption will be available to the extent of 10 per cent of the motor vehicle tax chargeable or 50 per cent of the scrapped value as mentioned in the certificate of deposit, whichever is lower. Registration fee rebate will be given to the extent of 25 per cent on the registration of a new vehicle purchased on the basis of the certificate of deposit.

After the critical age, a higher fitness fee will be charged as per the Central Motor Vehicles Rules. Environment compensation charge and road risk charge will be charged at the rate of Rs 1 per CC at the time of its fitness testing for vehicles which have completed critical age.

All other transport services like transfer, hypothecation alteration, NOC etc will be extended to the vehicles of critical age at a fee rate of Rs 100 more than the fee rate for vehicles other than that of critical age.