Scrap your Old Car and Pay No Registration Fee for the New One
The new draft policy suggests that a newly purchased vehicle shall be exempted from paying registration fees, if presented along with the scrapping certificate of a previously owned vehicles of the same category.
The Road Transport and Highways Ministry have proposed in a draft policy that buyers would not have to pay a registration fee for their new vehicles if they provide valid scrapping issued by an “authorised scrapping agency”.
The move, that could spur the mushrooming of vehicle scrapping agencies across the country, has been under works for several years now. The policy has been aimed at curbing vehicular pollution caused due to old commercial vehicles that contribute majorly towards deteriorating air quality around the country.
According to the draft notice, a newly purchased vehicle shall be exempted from paying registration fees, if presented along with the scrapping certificate of a previously owned vehicles of the same category. It is to be noted that the ministry has increased charges for renewing registration certificates and newer registration marks.
In order with the new rules, fitness certificates for transport vehicles older than 15 years have to be renewed every six months against one year under the current norms. In addition to this, only buses with user-friendly features for the differently-abled, such as priority seats, signs, securing of crutches, walkers and handrails, will be provided a fitness certificate.
In line with the same, Indian auto-giant Mahindra recently announced its partnership with Metal Scrap Trade Corporation Ltd (MSTC) and has set up scrappage centres called Mahindra Accelo. This would be the first government authorised scrappage centre in India. This addition in the policy comes in favour of the auto industry which has been witnessing a steady decline in sales. The strengthening of scrappage policies is expected to act as a trigger for auto sales in the country.