Transport Ministry proposes de-registration of government owned vehicles after 15 years

Economy


Registration of government-owned vehicles will not be renewed after a period of 15 years, the transport ministry has proposed.

The development comes in the run-up to the voluntary vehicle scrappage policy, which looks at discouraging older vehicles from plying on roads.

The ministry of road transport and highways on Friday issued a draft notification, proposing that registration of motor vehicles owned by Central government, State or Union Territory governments, local government institutions, PSUs, State transport undertakings, autonomous bodies with central or State governments, will not be renewed after 15 years.

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This policy is proposed to be effective from 1 April 2022, and the ministry has invited suggestions and objections on the notification over a period of 30 days.

Union transport minister Nitin Gadkari approved the move in January this year, pushing for vehicles to be replaced with technologically better, more environment-friendly vehicles.

Finance Minister Nirmala Sitharaman in February unveiled the long-awaited vehicle scrappage policy as part of the FY ‘22 budget announcements.

The policy will help combat vehicular pollution, besides bringing down India’s fuel import bill, Sitharaman had said.

ET reported on March 8 that strict fitness norms – and not age – will decide whether a vehicle should be discarded or not, according to the policy.

A series of notifications, pertaining to vehicle scrapping centres, revised vehicle re-registration and fitness test charges and fitness rules, which will form the eligibility criteria for a vehicle to be scrapped, are expected to be issued over the next couple of weeks.

The fitness renewal tests, which are required every two years for the first eight years, and every year after that for commercial vehicles, are expected to see a significant increase. For private vehicles, re-registration is needed after 15 years following a fitness test.

The scrapping policy is expected to boost demand in the automobile sector, besides helping to reduce pollution. It is not clear if the government will provide incentives for scrapping a vehicle to encourage people to discard old cars and buy new, more fuel-efficient and less-polluting ones.

Already, a disincentive in the form of a green tax for vehicles older than 15 years, has been announced before the budget by the transport ministry.



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