- Voluntary Vehicle Modernization Programme
Why in News?
The Vehicle Scrapping Policy, also known as the Voluntary Vehicle Modernization Program, was introduced by the Ministry of Road Transport and Highways.
Objective: The policy encourages voluntary scrapping of unfit commercial and passenger vehicles based on fitness, phased out through RVSFs and ATSs, and offers manufacturers discounts for up to two years.
Scrapping Incentives Overview
- Discounts for End-of-Life Vehicles: 3% for vehicles over 3.5 tonnes GVW, 1.5% for under 3.5 tonnes GVW.
- Passenger Vehicles: 1.5% of ex-showroom price or Rs 20,000 for scrapped vehicles in last six months.
- Additional Government Incentives: scrap value, Motor Vehicle tax concessions, registration certificate fee waivers, and other incentives linked to the Scrappage Certificate.