What is the vehicle scrapping policy?

As we all know pollution is increasing day by day and vehicles are one of the main sources of that. So let's talk about what the government has decided to reduce the pollution increased by vehicles. 

The Ministry of Road Transport and Highways(MORTHs) Nitin Gadkari introduced the Vehicle Scrapping Policy in the year 2021. According to the policy, every old vehicle that can not pass with fitness test needs to send to scrappage. Now, what is a fitness test?

Fitness Test For Vehicles :

There are many Automated Fitness centers(AFCs) in India where each individual has to test their vehicle. After getting tested if the vehicle got pass in fitness it will get a fitness certificate and will be able to go on the road but in case of failure, it will send it to scrappage.

As per the vehicle scrappage policy, every commercial vehicle older than 15 years and all private vehicles older than 20 years from the issue date are required to obtain a fitness test. In case of failure, it will be de-registered.

Advantages of Vehicle Scrappage Policy
Helps in reducing air pollution
Increase job opportunities
Avail tax benefits
As compared to old vehicles new ones will be safer

Categorization of Vehicles for Vehicle Scrapping:

When we are talking about vehicle scrapping, there is not only one vehicle that needs scrappage, there are different vehicles that are required to be scrapped mentioned below:
Government Vehicles: The vehicle scrapping policy for government vehicles got approval in January 2021. As per the rule, Vehicles that belong to the central government or state government and are older than 15 years needs will be scrapped.
Private Vehicles: Private vehicles are those vehicles that commute from one place to another place every day. It will be scrapped or de-registered after 20 years of its issue date.
Commercial Vehicles: All the vehicles that use for commercial purposes are commercial vehicles. These vehicles need to get fitness tests after 15 years of their issue date and if it is found unfit the vehicle will be scrapped. 

When will the Policy Come into Effect? 

  • A commercial vehicle that is older than 15 years will be de-register from April 1, 2023.
  • Personal vehicles older than 20 years will be de-register from June 1, 2024.

What is Authorized Vehicle Scrapping Facility? 

An authorized vehicle scrapping facility is an establishment that holds any authorization for scrapping vehicles under the guidelines for scrapping. 

Important terms for Authorized Vehicle Scrapping Facility:

The following terms should be understood in relation to vehicle scrapping:

Authorized Scrapper: The owner and operator of an authorized vehicle scrapping facility are referred to as an authorized scrapper.

Authorized Vehicle Scrapping Facility: A facility that has been authorized to execute vehicle dismantling and scrapping is referred to as an authorized vehicle scrapping facility.

Deposit Certificate: A document that the authorized scrapping facility issues to prove that a car has been transferred from an approved owner to an authorized scrapper.

Vehicle Scrapping Certificate: A certification from the scrapping facility attesting to the vehicle's final disposition. The authorized scrapper needs to keep it.

Scrap Yard: The place where the vehicle's disassembled pieces are processed for treatment is referred to as a scrap yard.

- Eligibility Criteria to Get Authorized Vehicle Scrapping Facility:

  • It should be owned by a legal entity.
  • It is required for an entity to have a valid GST, PAN, and incorporation certificate.
  • The organization ought to have applied for or already hold an establishment license from the regulator.
  • According to the pollution control board, the business must meet minimum technical standards for collecting and dismantling centres and must have the personnel and tools necessary to carry out dismantling tasks.
  • The organization should commit to obtaining the necessary quality certifications within a year of the start of operations.
  • A building plan and an approved plan layout should also be provided by the entity. The facility should have an environmental management plan.

With a User ID and password, the authorized vehicle scrapping facility will be given connectivity to and access to the VAHAN database of vehicle registration. For an IT system to securely access the VAHAN database, it must obtain security certifications.

In order to identify the true owner of the car, the facility should also confirm the identity of the individual delivering the vehicle for scrap. It must retain a copy of the same for at least six months.

How to establish a licensed vehicle recycling facility in India:

The steps are as follows:
The applicant may submit an application, along with the required fee, to the registration authority of the relevant state government or to the UT Administration, depending on where the proposed location of the facility is.
The state or union territory administration will decide on the application and any internal approvals required from its various departments within 60 days after the application date. This application will be regarded as approved once this time period has passed.
Within six months after the announcement of these rules, the central government must put into operation a single window clearance for the registration of this facility. the state or union territory administration will process all applications manually until that point.
The registration of the Vehicle Scrapping Facility validates for ten years and can have renewal in ten-year.

Car Scrapping Procedure :

  • For car scrapping the car will be delivered to the Authorized vehicle scrapping facility by the authorized owner or their representative together with the required paperwork. Before the car scrappage, the scrapping facility will conduct verifications to ascertain the person's legitimacy.
  • Assisting with the electronic filing of the scrapping request and transferring the registration certificate to the road transport or Regional Transport Office (RTO) to deregister the vehicle, it will access the VAHAN database to make the necessary entries about car scrappage.
  • It will give a certificate of deposit to the owner or their authorized representative, and they can use it to qualify for government advantages and incentives when buying a new car. The certificate will serve as documentation of the authorized scrapping facility acquisition of the vehicle's ownership.
  • The authorized owner or authorized agent will receive payment from the scrapping facility for the value of the demolished vehicle.
  • After the treatment is finished, the vehicle scrapping facility will issue a digital certificate of car scrapping.

Our Role in Obtaining the Authorized vehicle scrapping Facility:

  • Authorized vehicle scrapping facility consultants will educate you concerning each and every aspect of its approval.
  • Our consultants will assist you in filling out the application form for the same.
  • We will ensure a smooth procedure by ensuring proper documentation, evaluation, and testing to obtain an Authorized vehicle scrapping facility. 
  • Our expert consultants will provide you with proper guidance during the approval procedure.
  • JR compliance consultants will directly coordinate with the Authorized vehicle scrapping facility officials to ensure proper follow-ups and acknowledgments to obtain it.

Conclusion :

To conclude, JR Compliance can assist you in obtaining the Authorized vehicle scrapping facility approval by ensuring proper documentation, evaluation, testing, etc. Moreover, to make our client understand each aspect of the vehicle scrappage policy and facility approval, we will educate you regarding the same.

Along with this, delay in document submission, or filling incorrect information in the application form could delay the process.

Thus, to avoid such inaccuracy contact our expert and experienced team immediately for professional assistance and support.

In case of queries, we will provide you with the best possible solution for your concerns regarding the Authorized Vehicles Scrapping Facility.