Auto industry body SIAM on Thursday said the draft guidelines on authorised vehicle scrapping facility (AVSF) in India will help in setting up of such facilities in an organised manner while reiterating that the sector is waiting for incentive-based Vehicle Scrappage Policy from the government.
Welcoming the draft guidelines released by the Ministry of Road Transport & Highways for setting up of AVSF, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said the automobile industry wholeheartedly supports the vehicle scrappage initiative of the government.
"The draft guidelines will help in establishing organised vehicle scrapping facilities in the country and will lead to an increase in latent demand for end-of-life vehicles available for scrapping," he said in a statement.
Vehicle scrappage initiative of the government will not only help in removing old and polluting vehicles from roads but will also increase demand for new vehicles having better emission technology, meeting superior safety standards and at the same time lead to savings of the fuel, foreign exchange, raw material, Wadhera added.
Seeking an early scrappage policy, he said, "automobile industry keenly awaits an incentive-based vehicle scrappage policy also from the government, which will help fleet modernisation on a regular basis."
As per the draft AVSF guidelines, individuals, firms society or trust will be allowed to set up scrappage facility subject to meeting eligibility criteria and receiving authorisation from licensing authority.
The authorisation will be valid for 10 years which shall be renewable for another 10 years. Prospective scrappers must have usable treatment with a minimum area of 4,000 sq metre for small vehicles and 8,000 sq metres for all other bigger vehicles. Vehicles which have not renewed original registration, not been granted fitness certificate and those auctioned, impounded and abandoned by any enforcement agency, among others are allowed to be offered for scrapping.
The authorised scrapper will issue a digital certificate after the process of scrapping is completes with photographs of cut out chassis. A separate record for scrapped vehicles would be maintained on the VAHAN database by Centre.