India's Scrapping Policy for Vehicles to Boost Scrap Economy

SEATTLE (Scrap Monster): The vehicle scrapping policy announced by the Indian government aims to phase out end-of-life polluting vehicles in an environment friendly manner. The move is aimed at boosting the scrap economy and reducing environmental pollution.

The policy will be applicable to commercial vehicles that are over 15 years old and personal vehicles over 20 years old, irrespective of whether they run on petrol or diesel. The vehicles which fail to pass an automated fitness test at the end of the period have to be scrapped. Such vehicles will not be allowed on roads.

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When vehicles are scrapped, it generates large quantities of metals such as iron and steel, along with other components that could be refurbished or reused. The other major components that contribute to scrap economy are seats and plastic parts, said the Ministry of Road Transport and Highways.

The government plans to start mandatory testing of commercial vehicles in April next year. The testing of other category of vehicles, including personal vehicles, will start in a phased manner from June 2024. The discussions are on to announce the final plan. The new system could attract an investment of nearly INR 10,000 crore and lead to creation of around 35,000 jobs in the country.