From April 1, all vehicles owned by Central and State governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped, according to a notification by the Road Transport and Highways Ministry. The rule shall not apply to special purpose vehicles (armoured and other specialised vehicles) used for operational purposes for the defence of the country and for the maintenance of law and order and internal security, the notification has added. 

“Disposal of such vehicles shall, after the expiry of the 15 years from the date of initial registration of the vehicle, (should) be ensured through the Registered Vehicle Scrapping Facility set up in accordance with the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021,” it has said. 

Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after 15 years. 

Under the new policy which is effective from April 1, 2022, the Centre has said that States and Union Territories will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles. 

Last year, Union Highways and Transport Minister Nitin Gadkari had said that his aim was to develop at least one automobile scrapping facility within 150 km from each city centre, while asserting that the country had the potential to become a vehicle-scrapping hub of the entire South Asian region.