Challenges of vehicle scrapping

 Phasing out polluting vehicle from roads is a critical component of decarbonsing the transport sector and needs to be pushed along other initiatives like adoption electric vehicles, blending of ethanol with fossil fuel. Union Transport Minister Nitin Gadkari making a renewed appeal to automobile stakeholders to support the vehicle scrapping policy describing it as a win-win situation for all is indicative of the resistance to the policy even after three years of announcement. Wider acceptance of the policy depends on government and the industry addressing the issues raised by vehicle owners. Lack of clarity on benefits of vehicle scrapping has triggered opposition to the policy by different sections of people who are insisting that scrapping be linked to roadworthiness and not be determined by age of vehicles. They also argue that resale value of vehicle is higher than the amount offered by vehicle scrapping facilities which makes reselling a better option than scrapping for them. The perception that has taken shape among vehicle owners who are opposed to the policy is that it has been formulated primarily for the benefit of the automobile industry and facilitate sale of new vehicles. An official release quoted Gadkari as saying that since the auto industry is the biggest beneficiary of this policy they must come forward and support the three main pillars-more investment in setting up Automated Testing Stations, Registered Vehicle Scrapping Facilities and finalizing discount percentage to car owners depositing certificate of scrapping of their old vehicles. The Central Motor Vehicles (Fifth Amendment) Rules, 2023 notified by the Ministry of Road Transport and Highways stipulates that in case of renewal of certificate of fitness in respect of transport vehicles will be for two years for vehicles up to eight years old and one year for vehicles older than eight years, provided that the fitness of the vehicle of the category. Heavy goods vehicle, heavy passenger motor vehicle, medium goods vehicle, medium passenger motor vehicle and light motor vehicle shall be done mandatorily only through an Automated Testing Station (ATS) with effect from October 1, 2024. In places where the ATS is operational, it will come into effect from commencement of the notified rules. Establishment of ATS, therefore, is crucial for timely assessment of the fitness of these commercial vehicles. In case of personal vehicles, the fitness test is to be carried out after expire of first registration period of 15 years and then at the interval of five years. The vehicle scrapping policy, however, makes it mandatory for scrapping personal vehicles after 20 years and commercial vehicles after 15 years if such vehicles fail the fitness tests. Environment experts have sounded the caution against dumping of scrapped vehicles increasing the risk of carbon emission from toxic metals if the scrapping facilities are not equipped to handle the load and optimally recycle scrapped components. Transparency of fitness tests at ATS will play a crucial role in boosting confidence in the process and volunteer to visit an ATS and deposit the vehicle that fails the test. The policy states that as a disincentive measure, increased re-registration fees will be applicable for private vehicles 15th year onwards from the date of initial registration. Incentives of higher percentage of discounts in purchase of a new vehicle after depositing the scrapping certificate will make the policy popular even among those are opposing it now. Some of the incentives proposed in the policy are scrap value for the old vehicle given by the scrapping centre, is approximately 4-6% of ex-showroom price of a new vehicle, advising state governments to offer a road- tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles, advising the vehicle manufacturers for providing a discount of 5% on purchase of new vehicle against the scrapping certificate and waiving of the registration fees for purchase of new vehicle against the scrapping certificate. Building awareness among vehicle owners on how reducing vehicular pollution by scrapping unfit vehicles will help climate change mitigation and help the country achieve its nationally determined goal of gradually reducing carbon emission to net zero by 2070 will help the central and state governments push the policy. Affordability of electric vehicles and their easier adoption through creation of easily accessible and affordable charging facilities parallel to pushing the policy is equally important to decarbonize the transport sector in India. Scrapping of 8220 government vehicles in different states till March this year indicates progress in policy implementation but these figures are limited to only six states, including Assam. Besides, the number of registered vehicle scrapping facilities in these states is limited to only 12 says a lot about the slow progress in building the ecosystem for vehicle scrapping. Nevertheless, the policy needs to be supported by all concerned by growing vehicular pollution from unfit vehicles.