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VEHICLE SCRAPPING POLICY

Chahal's Gyan Ki Baat

 

INDEX

REFERENCE WITH UPSC-CSE SYLLABUS

WHY IN NEWS

ABOUT VEHICLE SCRAPPING POLICY

CURRENT SITUATION OF VEHICLES IN INDIA

WHEN WILL IT START

FITNESS CENTRES

CHARGES FOR REREGISTRATION

ABOUT CIRCULAR ECONOMY

WHY VEHICLE SCRAPPING POLICY

BENEFIT TO CITIZENS

ECONOMIC BENEFIT

ENVIRONMENTAL BENEFIT

INTERNATIONAL IMPACT

CHALLENGES

CONCLUSION

EXPECTED PRELIMS QUESTIONS

EXPECTED MAINS QUESTION

 

REFERENCE WITH UPSC-CSE SYLLABUS

  • General Studies-II, General Studies-III
  • Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
  • Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.

WHY IN NEWS

  • For unfit vehicles PM Narendra Modi while addressing the Investor Summit in Gujarat via video conferencing launched Vehicle scrapping policy/Voluntary Vehicle-Fleet Modernization Programme.
  • For setting up vehicle scrapping infrastructure under the Vehicle Scrapping Policy summit was organized to invite investment.

ABOUT VEHICLE SCRAPPING POLICY

  • Over a certain age all automobiles should be off the roads in the interest of better pollution control and safety, which new vehicles ensure.
  • Personal vehicles over 20 years old and Commercial vehicles over 15 years old are marked for scrapping.
  • If they fail an automated fitness test they will be marked for scrapping and it doesn’t matter whether they run on diesel or petrol.
  • The owner can choose to scrap them but these will be deregistered and cannot be used on the road.

CURRENT SITUATION OF VEHICLES IN INDIA

  • Over 15 years old currently India has 34 lakh light motor vehicles and 51 lakh light motor vehicles that are more than 20 years old.
  • Ministry of Road Transport and Highways data says around 17 lakh medium and heavy commercial vehicles are older than 15 years without valid fitness certificates.

WHEN WILL IT START

  • In April 2023, mandatory testing of heavy commercial vehicles will start.
  • In a phased manner in June 2024, Personal vehicles testing will start.
  • Older than 15 years all government and PSU-owned vehicles will be scrapped by October 1, 2022.
  • Gently without the consumer facing risk, India Inc. time to come up with an ecosystem wherein testing and next scrapping can happen.
  • To alter the rollout plan by a few months, there are talks within the government.

FITNESS CENTRES

  • Various criteria like emission norms, braking and other parameters, without human intervention, automated Fitness Centers will have in it.
  • Providing land for free for these centers, government has requested states to consider this option.
  • The number and concentration of fitness centers in an urban area will depend on market demand.
  • Model Inspection and Certification Centers worth Rs 17 crore in all states, the Centre is promoting this idea.
  • Around 26 such model centers has been sanctioned.
  • Vehicle owners do not have to travel great distances, so Centre want these facilities to be near city centers.
  • Without valid fitness about 1 crore vehicles in India that are plying on the roads.
  • Those vehicles that fail a fitness test that would be scrapped under the new policy.
  • For scrapping a vehicle the primary criterion would be its fitness not its age.
  • Setting up of automated fitness centers in the PPP mode in every district in the country is government aim.

CHARGES FOR REREGISTRATION

  • The charges for reregistration will be high, in case, the owner chose to continue using old vehicle.
  • Around eight to around 20 times, depending on the type of vehicle, the charges for reregistration will be.
  • These charges will kick in from October this year (2021).
  • After they have completed 15 years, Personal vehicles, can be reregistration.

ABOUT CIRCULAR ECONOMY

  • Reuse, sharing, repair, refurbishment, remanufacturing and recycling of resources a circular economy depends on them.
  • Aim is to create a closed-loop system, reducing the use of resources, generation of waste, pollution and carbon emissions.
  • Many other parts may emerge that can be refurbished and ploughed back into use when a car is scrapped, apart from metals including iron and steel.
  • There is a value in the scrap economy for recycled steel from scrap and even seats and plastic parts.
  • Like in Alang shipbreaking yard in Gujarat it is similar to scrappage of old ships.
  • Productivity improves in a circular economy because products, materials, equipment and infrastructure are kept in use for longer

WHY VEHICLE SCRAPPING POLICY

  • The scrapping that currently happens in India is not productive because last year (2020) around Rs 23,000 crore worth of scrap steel was imported.
  • So by this policy More scrap yards will be created in the country and waste from old vehicles will be effectively recovered.
  • A new identity to mobility of New India, and the automobile sector will be ensure by this policy.
  • In modernizing the country’s vehicle population it will play a big role and removing unfit vehicles from the roads in a scientific manner.
  • Country’s automobile and metal industries will get a boost.

BENEFIT TO CITIZENS

  • Tax rebate, sops, and a discount on the new car, to help vehicle owners find a reason to retire old vehicles, the government envisages that the scrappage certificate will entitle the owner with these extra benefits.
  • It can be used by anyone, the certificate is tradable not necessarily by the owner of the scrapped vehicle.
  • While buying a new vehicle those having this certificate will not need to pay any registration fee.
  • A waiver on the registration fee for their new vehicle, and will be entitled to relief in road tax those who scrap their old vehicles.
  • In payment of road tax some allowances will be given.

ECONOMIC BENEFIT

  • The consequence of the policy can be that it can attract investment worth Rs 10,000 crore and create 35,000 new jobs.
  • In Europe and the US, a scrappage policy has been followed by boost in demand in the auto manufacturing sector
  • Due to recession it can be used as a tool to deal with economic slowdown in the manufacturing sector and consumption.
  • It will reduce cost of travel and transportation and also help in economic growth.

ENVIRONMENTAL BENEFIT

  • Newer cars come with better emission standards and better fuel efficiency.
  • Road accidents will be reduced and improve health by new policy because of the reduction in vehicular pollution.
  • 10-12 per cent more polluting are the old vehicles and these old vehicles also pose a safety hazard.
  • It will make India clean, congestion-free and convenient mobility in the 21st century.

INTERNATIONAL IMPACT

  • In long term making India the scrapping hub (integrated scrapping hub for both ships and vehicles) of Southeast Asia (countries that do not have scrapping facilities) is government aim.
  • From Bangladesh, Bhutan, Myanmar, Maldives, Nepal, Sri Lanka scrapped vehicles can be brought to Kandla.
  • A viable circular economy creation is government aim and to bring value for all stakeholders while being environmentally responsible.

CHALLENGES

  • Road tax and registration fees on replacement vehicles have been advised to waive off but they are part of revenue of state.

CONCLUSION

  • Vehicle manufacturers has to be made responsible for generating the waste and action should be taken against them.
  • After the pandemic period it is required for centre government to financially support the state (for their loss in tax collection and registration charge) and manufactures for success of vehicle scrapping policy.

 

EXPECTED PRELIMS QUESTIONS

Q1. Consider the following statement regarding vehicle scrapping policy

  1. In April 2023, mandatory testing of heavy commercial vehicles will start.
  2. In a phased manner in June 2024, Personal vehicles testing will start.
  3. Older than 20 years all government and PSU-owned vehicles will be scrapped by October 1, 2022.

Which of the following statement is correct?

(1) a only

(2) a and b

(3) a and c

(4) All of the above

SOLUTION

STATEMENT A is correct because In April 2023, mandatory testing of heavy commercial vehicles will start.

STATEMENT B is correct because In a phased manner in June 2024, Personal vehicles testing will start.

STATEMENT C is incorrect because Older than 15 years all government and PSU-owned vehicles will be scrapped by October 1, 2022.

 

Q2. Which of the following counties have vehicle scrapping policy in their country.

    1. United states
    1. Germany
    1. China
    1. Canada

Which of the following statement is correct?

  1. a only
  2. a and d
  3. a, b , c
  4. a , b , c, d

SOLUTION

  1. USA launched vehicle scrapping policy in July 2009.
  2. Germany launched vehicle scrapping policy in January 2009.
  3. China launched vehicle scrapping policy in 2009.
  4. Canada  launched vehicle scrapping policy in January 2009.

 

Q2. Which of the following statements are correct

  1. Reuse, sharing, repair, refurbishment, remanufacturing and recycling of resources a circular economy depends on them.
  2. Currently India has 340 lakh light motor vehicles that are over 15 years old and 510 lakh light motor vehicles that are more than 20 years old. 

(1) a only

(2) b only

(3) Both a and b

(4) Neither a nor b

SOLUTION

STATEMENT A is correct because Reuse, sharing, repair, refurbishment, remanufacturing and recycling of resources a circular economy depends on them.

STATEMENT B is incorrect because Currently India has 34 lakh light motor vehicles that are over 15 years old and 51 lakh light motor vehicles that are more than 20 years old.

 

EXPECTED MAINS QUESTION

Q1. Discuss the key provisions of Vehicle scrapping policy and its impact in automobile sector in India.

Sources used:

The Hindu,The Indian Express, British Broadcasting Corporation News, Press Trust of India, Business Standard, The Economic Times