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Centre Considers Major Shift in Vehicle Scrapping Policy; Relief For Old Car Owners Soon?

Changes in car scrapping laws in India

The Indian government is poised to make significant amendments to its Vehicle Scrapping Policy, potentially offering relief to owners of vehicles over 15 years old. This shift could fundamentally alter the automotive landscape and consumer decisions regarding older vehicles.

Centre Considers Major Shift in Vehicle Scrapping Policy; Relief For Old Car Owners Soon?

Key Points

  • Focus on pollution levels rather than vehicle age
  • Mandatory scrapping rule for unfit vehicles may be modified
  • Plans to improve reliability of pollution checks

In a major policy reversal, the Centre is considering changes to its three-year-old Vehicle Scrapping Policy, moving away from age-based mandates towards a more nuanced approach focused on actual vehicle emissions.

Centre Considers Major Shift in Vehicle Scrapping Policy; Relief For Old Car Owners Soon?

Anurag Jain, Secretary at the Ministry of Road Transport and Highways (MoRTH), announced this potential shift during the annual convention organized by the Society of Indian Automobile Manufacturers (SIAM) on September 10. “When you come out with a policy that scrapping is mandatory after 15 years, people come back to us with a question — if I have maintained my vehicle well, why do you want to scrap my vehicle? You can’t mandate,” Jain stated.

This development comes in response to feedback from vehicle owners and represents a significant departure from the current policy introduced in 2021. The existing guidelines mandate fitness tests for private vehicles over 20 years old and commercial vehicles over 15 years old, with those failing the tests sent to scrapyards.

To implement this change effectively, MoRTH is planning to enhance the trustworthiness of vehicle pollution checks. The ministry has sought assistance from the auto industry to achieve this goal.

Impact on Diesel Vehicles and State Policies

Centre Considers Major Shift in Vehicle Scrapping Policy; Relief For Old Car Owners Soon?

This potential policy shift could have far-reaching implications for diesel vehicle owners, who have been particularly affected by stricter age-based regulations in some states. For instance, Himachal Pradesh recently announced a policy to scrap diesel vehicles over 10 years old, following similar rules in the Delhi-NCR region.

If the Centre’s new approach is adopted, it could lead to a reassessment of such state-level policies, potentially allowing well-maintained older vehicles, including diesels, to remain on the roads longer if they meet emission standards.

Economic and Environmental Considerations

The proposed changes reflect a balance between environmental concerns and economic realities. While the original policy aimed to reduce pollution by removing older vehicles from the roads, it also posed economic challenges for many vehicle owners, particularly in a price-sensitive market like India.

By focusing on actual emissions rather than age, the new approach could:

  • Reduce the financial burden on owners of well-maintained older vehicles
  • Encourage better vehicle maintenance practices
  • Potentially slow the decline in diesel vehicle sales, which dropped from 58% market share in FY13 to less than 19% in FY23

As the government considers these significant changes to the Vehicle Scrapping Policy, potential car buyers and current owners of older vehicles face a shifting landscape. While the focus on emissions over age could provide relief to many, it also underscores the importance of proper vehicle maintenance and pollution control.
The coming months will be crucial as the government finalizes these amendments, potentially reshaping the future of India’s automotive sector and its approach to environmental sustainability in transportation.

Delhi’s 10-Year and 15 year scrapping laws: What happens to them?

Centre Considers Major Shift in Vehicle Scrapping Policy; Relief For Old Car Owners Soon?

While the government considers these changes, Delhi might remain an exception. This is because the mandatory banning of old vehicles in Delhi NCR was enacted by a National Green Tribunal and upheld by the Supreme Court. So there is a possibility that everything might remain the same in Delhi NCR and the old laws would continue. There is currently a plea before the SC that challenges the “Guidelines for Handling End of Life Vehicles in Public Places of Delhi, 2024” that bans diesel vehicles older than 10 years and petrol vehicles older than 15 years. The plea says that it is arbitrary.

If the government makes changes to scrapping laws and focus on fitness and emissions nationwide, the courts may also look at the plea leniently. Meanwhile, the government itself may be able to change the current ban with a new policy or law. But that is still speculation. For now, Delhi NCR car owners should sit tight and wait for clarity.