Vehicle scrapping draft norms to be out this month

New Delhi: Fast-tracking norms for creation of formal scrapping centres, the government will soon announce a voluntary vehicle scrappage policy to set out a clear framework. The policy is expected to bring the auto sector out of its worst slump in the past 20 years, and create demand for new vehicles. Draft guidelines are expected to be out for public comments this month, before the scrappage policy is announced. They are being prepared by the transport ministry in consultation with the ministries of steel and environment, forest and climate change, a senior government official told ET. “The guidelines will ensure details of the scrapped vehicles are linked with VAHAN (transport ministry vehicle database) and vehicles are deregistered at the scrapping centre itself so people do not have to visit the Regional Transport Office,” said the official, “This will ensure ease of doing business.” 71415826 These centres will issue scrapping certificates to vehicle owners. Most existing scrapping centres, largely in the informal sector, are heavy polluters. “The government is preparing a scrapping policy but how will it take off if there are no (proper) scrapping centres?” said the official who is privy to the development.Carmakers will also be able to set up their own scrapping centres, which will help promote their sales, though there are no direct incentives being provided.“Original equipment manufacturers (OEMs) can offer discounts on a new vehicle if its owner uses the company’s scrapping centre,” the official pointed out. A scrapping centre will require permission from state transport departments and its owner will need to furnish earnest money deposit (EMD) to states. “Amount of EMD is not yet decided, but it is proposed to be from `10 lakh to `1 crore,” said the official. “A smaller amount will ensure even unorganised scrapping units can come on board.” Scrapping centres will only be set up in industrial areas, and each is expected to provide employment to 25 people. Untitled Carousel 71408167 71387495 71410289 71398632

from Economic Times https://ift.tt/2n0HGfE