India aims for 1,000 vehicle scrapping centres, 400 fitness test hubs: Gadkari

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India aims for 1,000 vehicle scrapping centres, 400 fitness test hubs: Gadkari

India aims for 1,000 vehicle scrapping centres, 400 fitness test hubs: Gadkari

Industry News
Dec 19,23

During the launch of 'DigiELV,' Gadkari disclosed that the road ministry has already granted approval for 85 vehicle scrapping facilities nationwide.

India aims for 1,000 vehicle scrapping centres, 400 fitness test hubs: Gadkari

Union Road Transport and Highways Minister Nitin Gadkari emphasised the need for 1,000 vehicle scrapping centres and 400 automated fitness test centres across the country. During the launch of 'DigiELV,' Gadkari disclosed that the road ministry has already granted approval for 85 vehicle scrapping facilities nationwide.

Gadkari stated, "We require 1,000 vehicle scrapping centres and a minimum of 400 automated fitness test centres in the country." 'DigiELV' serves as a trading platform for the End of Life Vehicle Certificate of Deposit, allowing individuals with a Certificate of Deposit (CD) to sell it through the platform. CDs are issued when users submit their vehicles for scrapping at Registered Vehicle Scrapping Facilities (RVSF).

Highlighting the National Vehicle Scrappage Policy as beneficial for all stakeholders, Gadkari expressed optimism that India could become a scrapping hub in South Asia. Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021, aiming to phase out unfit and polluting vehicles while promoting a circular economy.

Under the policy, effective from April 1, 2022, the Centre announced that states and Union Territories (UTs) would offer up to a 25% tax rebate on road tax for newly purchased vehicles following the scrapping of old ones. The policy, introduced in the Union Budget 2021-22, mandates fitness tests every 20 years for personal vehicles and every 15 years for commercial vehicles.

Source: Business Standard