Haryana to introduce vehicle scrappage policy, Legal News, ET LegalWorld – Legal Firms


The Haryana government on Thursday said it will launch a vehicle scrappage policy which will offer incentives including a rebate on fee on the registration of a new vehicle.

The five-year policy will be in sync with the voluntary vehicle fleet modernization programme of the Government of India to encourage the scrapping of vehicles which have attained the critical age that is 10 years in case of diesel vehicles and 15 years in case of petrol vehicles, said an official statement here.

The state Cabinet which met under the Chairmanship of Chief Minister Manohar Lal Khattar here approved the policy draft.

Under this policy, the vehicles which have completed the critical age of 10 years in the case of diesel vehicles and 15 years in the case of petrol vehicles shall be scrapped, it said.

An incentives-based system will be introduced to facilitate phasing out the unfit vehicles. Furthermore, dis-incentives will be utilized to make use of old unfit vehicles, a costly affair, it added.

Under it, the exemption in the tax shall be available to the extent of 10 per cent of the motor vehicle tax chargeable or 50 per cent of the scrapped value as mentioned in the certificate of deposit, whichever is lower, it said.

The registration fee rebate will be given to the extent of 25 per cent on the registration of a new vehicle purchased on the basis of the certificate of deposit, it said.

After the critical age, a higher fitness fee shall be charged to the vehicles as per the Central Motor Vehicles Rules, it said.

Environment compensation charge and road risk charge will be charged at the rate of Rs 1 per CC (cubic capacity) of the vehicle at the time of its fitness testing for vehicles which have completed critical age, respectively, said the statement. All other transport services like transfer, hypothecation alteration, NOC etc shall be extended to the vehicles of critical age at a fee rate of Rs 100 more than the fee rate for vehicles other than that of critical age, it said.

The registered vehicle scrapping facilities shall be encouraged to be established purely through private investment, it said.

Meanwhile, the state government said the transport department will introduce the system of e-auction of preferential registration numbers.

The state Cabinet was apprised that it has put in place the system of assigning of preferential registration marks (numbers) to non-transport vehicles through e-auction and to transport vehicles on a first come first serve basis and assigning of ordinary registration marks by random generation using a computer system.

This will further help to enhance transparency while assigning preferential marks to the general public and also help to enhance the state exchequer in terms of fees and revenue to be paid by the vehicle owners of non-transport vehicles for getting the preferential registration marks online, it said.

The registration marks (numbers) are presently assigned randomly through a software on the Parivahan portal but for assignment of the preferential registration marks, a formula of first come first serve was prescribed under the rules.

Sometimes on a particular date and time, more than one applicant applies for the grant of a specific preferential mark leading the staff in a fix to decide as to which applicant has submitted the application first and to whom the mark can be assigned, it said.

This sometimes resulted into an awkward position as both applicants raised their claim on the said number. Therefore, it has been decided to introduce the e-auction of preferential marks, it said.


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