Vehicle scraping process will be digital, scraping certificate will give exemption in buying new vehicles

In order to make the vehicle scrapping process more convenient for the common people, the government has decided to digitize it. Under this, vehicle owners will get the scrapping certificate digital and most of the process will be digital. For this, the Ministry of Road Transport and Highways has issued a draft notification related to the Motor Vehicles (Registration and Vehicle Scraping Facility Amendment) Rules, 2022.

Advantages of Digital Vehicle Scraping

Digital scraping certificate will be valid for 2 years
Sales of new vehicles expected to increase by 10 to 12 percent
5 percent discount will be available from scrapping certificate on buying new vehicles
25% off from scrapping certificate on registration of new vehicle

The Motor Vehicles (Registration and Functions of Vehicle Scraping Facility) Rules were issued in September last year. The new notification is a modified version of the same. The amendments have been made to simplify and digitize the process of vehicle scraping for all stakeholders such as vehicle owners, RVSF operators, dealers, regional transport authorities, etc., a ministry statement said. Its objective is to ensure ease of doing business and make the processes easy and time bound for the common man.

Will be able to apply for scrap sitting at home

Under the amended provision, vehicle owners have the facility to apply for vehicle scrapping digitally. To help vehicle owners apply for scrap digitally, RVSFs will act as facilitation centres. Multiple certificates have to be submitted for more details related to the vehicle submitted for scrapping. The above certificates will be available digitally to the vehicle owners and will have a validity period of two years.

No blacklist vehicle application

The necessary checks to be done from the ‘Vahan’ database of the Transport Department have been added before the vehicle owner submits the application. There should be no record of the vehicle being blacklisted by the Regional Transport Officers. Must have a certificate relating to the purchase, hire or agreement of the vehicle. There should be no criminal record against the vehicle in the records of National Crime Records Bureau. There should not be any outstanding on the vehicle. As per the amended rules, applications will not be submitted for vehicles that fail any of these tests.

Vehicle industry will gain momentum

The scrapping policy will boost employment along with the automobile industry in the country. The annual turnover of the Indian auto industry is around Rs 7.5 lakh crore. The target is to take it to Rs 15 lakh crore in five years. The scrappage policy is expected to cut the cost of raw materials by about 40 per cent. Scrap steel worth about 22 thousand crores is imported in the country. This policy will reduce its dependency.