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    All You Need To Know: Government Announces VVMP (Vehicle Scrappage Policy) FAQs

    by Mahesh Yadav on Friday, Aug 13 2021

    Ministry of Road, Transport and Highways today officially announced the Voluntary Vehicle Modernization Policy (VVMP). Commonly, it’s known as the Vehicle Scrappage Policy. Here is all the information about the new policy:

     

    Vehicle Scrappage Policy

    Is It Mandatory To Scrap Your Beloved Vehicle?

    As the name suggests, the Voluntary Vehicle Modernization Policy is ‘voluntary.’ Only the vehicles that fail the new test criteria will be deemed unfit for public roads.

    How Will The Government Decide Which Vehicle Will Be Scrapped?

    There was a fear among classic car owners and those who want to hold onto their cars for decades. The vehicle owners feared that like the Delhi NCR’s 10/15-year ban, this policy will also make older vehicles ineligible to ply on roads.

    The ministry has categorically taken that out of the question by making it voluntary. If you can maintain the vehicle to comply with the standards, then you can keep it with you for as long as you want.

    How To Test The Fitness Of Your Old Vehicle?

    The government will set up some 500 computerised fitness test centres. The computerised nature of these test centres will make it more difficult to cheat in the tests. Older vehicles will have to visit the test centres more often than new ones. The test frequency is not defined yet.

    Where Can You Scrap Your Old Vehicle?

    If your vehicle fails the test, then you can choose to scrap your vehicle at one of the 60-70 scrappage centres. After giving your car at these scrapping centres, the centre will give you a Certificate of Deposit.

    When Will The Policy Come Into Effect?

    First, the government will work on having a decent number of automated fitness centres up and running for easy access. The goal is to have a centre within 150-200km for every vehicle owner in the country.

    Starting April 1, 2023, the tests will become mandatory for commercial vehicles.

    For private car owners, and other categories of vehicles, the testing will ramp up in a phased manner starting from June 1, 2024.

    Also read - 2021 Safest Cars in India Under 10 Lakh

    What Are The Direct Benefits Of Scrapping Your Old Car, Bus Or Truck?

    You will not be compensated in cash for giving up your vehicle. The government is in talks with the car manufacturers to offer a 5% discount to buyers who present the Certificate of Deposit.

    From the government’s side, you’ll get concessions in road tax and registration fees when buying a new car.

    What Are The Indirect Benefits Of VVMP Vehicle Scrapping?

    The road and transport department expects the VVMP to create more jobs in the auto sector as it will indirectly help boost the demand for new vehicles. Other than that, newer cars are more reliable, more fuel-efficient and have higher safety standards. So, they’ll also make the roads safer and cost you less to run. Because of the tighter emission norms, the new cars will also help contain the pollution.

    What Are The Benefits Of VVMP For Carmakers?

    The Ministry suggests that the VVMP will boost demand for new cars as more and more vehicle owners voluntarily choose to participate in the scrappage.

    Given the sky-high commodity prices, especially for metals, carmakers will be able to recycle and reuse old cars. This will help them with cutting down their input costs by up to 40%.

    Also read - 2021 Safest SUV in India Under 10 Lakh

    What Are The Benefits Of VVMP For Governments?

    The ministry estimates an additional GST collection of Rs. 30 - 40,000 crore for central governments and an equal amount for state governments. These figures are estimated assuming the increase in demand for new vehicle purchases after the VVMP comes into full effect.

    Anything Else I Should Know?

    At the Investor’s Summit, the government proposed the participants and startups work towards efficient recycling technologies and processes. Recycling will help us cut down on our imports and minimize our dependence on foreign countries.

    The Minister hopes to make India the largest vehicle recycling hub for entire South-East Asia. With such a move, it’ll further reduce our reliance on imports for commodities such as copper, aluminium, steel, rubber and others.


    ABOUT THE AUTHOR

    Mahesh is a fan of compact, quirky and underrated vehicles that punch above their weight. Multix, Nano, Strom R3 and Navi are his favorites.

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