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