Due to recent concerns over environmental pollution and road safety, the Union government of India announced a vehicle scrappage policy in 2021 with the aim of phasing out old and polluting vehicles. However, an internal audit conducted by the government has revealed that states have made little progress in implementing this policy, leading to its stalling and hindering efforts to curb pollution and enhance road safety.
The audit report, shared with senior cabinet ministers, highlights the lack of traction gained by the vehicle scrappage policy. Despite its noble intentions, many vehicle owners continue to operate their old and polluting vehicles beyond the end of the registration period, opting to resell them rather than scrapping them. This practice has been observed particularly in rural areas.
Among the key findings of the audit report is the limited progress made by states in implementing the policy. Only a few states have taken concrete steps, such as setting up automated testing stations (ATS) and registered vehicle scrapping facilities (RVSF), and instituting incentives and disincentives for vehicle users. Shockingly, seven out of the 16 states analyzed, including Delhi, have shown no progress in implementing the policy, while the progress of others has been deemed inadequate.
One of the key components of the vehicle scrappage policy was the establishment of ATSs through the public-private partnership (PPP) route, as well as the promotion of RVSFs across the country. However, the audit found that several states, including Maharashtra, West Bengal, Delhi, Haryana, Odisha, Karnataka, and Punjab, have repeatedly extended tenders for ATSs, indicating a lack of progress in this aspect. Additionally, states like Telangana and Tamil Nadu have made no progress in this regard at all.
Furthermore, the audit report revealed that several states, including Maharashtra, Kerala, Delhi, Andhra Pradesh, Tamil Nadu, Telangana, and Gujarat, have made no progress in providing waivers on registration fees and offering motor vehicle tax rebates to individuals scrapping their vehicles. In fact, Delhi has not even announced any motor vehicle tax concessions for its citizens.
Despite the policy’s objectives, only around 52,000 vehicles have been scrapped since its announcement, with the majority being government vehicles. This figure pales in comparison to the over 4 million cars sold in India in 2023 alone, indicating a significant gap between the policy’s goals and its actual implementation.
To address the challenges highlighted in the audit report, several remedial measures have been suggested. One recommendation is to simplify the rules governing ATSs and RVSFs to expedite their establishment and operation. Additionally, there is a proposal to collaborate with automakers to offer discounts to individuals scrapping their vehicles, thereby incentivizing compliance with the policy.
The vehicle scrappage policy, launched in August 2021 by Prime Minister Narendra Modi, aimed to achieve multiple objectives. Firstly, it sought to reduce pollution by phasing out unfit vehicles from the roads. Secondly, it aimed to improve road safety by replacing old vehicles with newer, safer models. Finally, the policy aimed to enhance the national fuel efficiency of vehicles, contributing to India’s broader environmental goals.
The policy outlined various incentives to encourage vehicle owners to scrap their old vehicles, including waivers on registration fees for new vehicles, rebates on motor vehicle tax, and higher fees for fitness testing certificates for vehicles older than 15 years. However, the slow progress in policy implementation has hampered the realization of these objectives.
In addition to its environmental and road safety benefits, the successful implementation of the vehicle scrappage policy has the potential to boost the automotive sector. By phasing out old vehicles and encouraging the purchase of new ones, the policy could stimulate demand for automobiles, creating new job opportunities and formalizing the informal scrappage industry.
The internal audit conducted by the Union government has revealed significant challenges in the implementation of the vehicle scrappage policy across states in India. To address these challenges and realize the policy’s objectives, concerted efforts are needed from both the central and state governments, as well as collaboration with key stakeholders in the automotive industry. Only through effective implementation can India successfully phase out old, polluting vehicles and pave the way for a cleaner, safer transportation system.
