Nitin Gadkari says people opting for scrapping should get a discount on new vehicles
Nitin Gadkari, Union Minister for Road Transport and Highways on Wednesday said that people scraping their old vehicles help in increasing the revenue of auto companies and should thereby get discounts for new purchases.
Addressing the 62nd annual convention of the Society of Indian Automobile Manufacturers (SIAM), Gadkari added, that a discount of Rs 50,000- Rs 1 lakh can be given for big vehicles like trucks or buses and the amount can be less for smaller vehicles, further adding that it can serve as an incentive to get vehicles scrapped.
In January 2022, the Delhi government issued a notice directing old vehicle owners to opt for a scrappage policy. This directive by the Delhi government came on the back of the central government’s vehicle scrappage policy.
What is a vehicle scrappage policy?
It is a government-funded programme to scrap old and unfit vehicles and replace them with modern and new vehicles on the roads. The policy came into effect from April 1, 2022, after it was announced in the Union Budget 2021-2022. Vehicle scrappage policy provides fitness tests after 20 years for personal vehicles and 15 years for commercial vehicles.
RTO rules for scrapping and deregistration vehicles
• The car owner should first write a letter to the authorised RTO about scrapping
• The owner will have to surrender the original RC and chassis number to the RTO for records
• A confirmation from the scrap dealer on letterhead with a complete address is also mandatory to be submitted
• The owner should also submit an affidavit with the application of scrap and de-registration.
• The car will be deregistered after RTO verifies the documents and receives a diligence report from the traffic police and the National Crime Records Bureau (NCRB)
When should you consider scrapping a car?
• Here are some of the scenarios in which you can consider scrapping your car:
• If your car is damaged beyond repair or is not in working conditions
• If the registration certificate of the car has expired and is not being renewed
• A 10-year-old diesel car or a 15-year-old petrol car that is illegal to ply on roads
Things to know about car scrapping
• When a car is scrapped, its chassis number is taken out before the scrap is sent for recycling
• The car owner should reach an authorised dealer for car scrapping. They should also inform the RTO about the same and get the vehicle deregistered
• The scrap dealer will perform a physical inspection, following which, they will quote a price to the owner.
• It is not mandatory to submit the original RC of the vehicle to the dealer
