Get to know the details of the new Voluntary Vehicle Modernization Program, which is also known as the V-VMP plan of the government that has been drafted by the ministry of road transport and highways. The draft is ready, and the government is planning to take aside around 11-year-old polluting vehicles which are the reason for pollution.
Overview of draft policy
Currently, there are no regulations to deal with the disposal of automobiles, but there’s an emphasis to make scrapping of vehicles safer and environment-friendly. It is gaining pace after National Green Tribunal (NGT) ordered a ban on 10-year old diesel and 15-year old petrol cars in Delhi and surrounding areas.
With the scrapping of 10-year-old vehicles off the roads, the government of India plans to generate steel scrap worth Rs. 11,500 crore annually. This will help to reduce the burden of importing. The government will offer an incentive of 8 to 12 % of the cost of the new vehicle after surrendering the old vehicle. The government plans to get views from stakeholders as well as general public. However, the proposed policy is here to implement stricter emission norms for vehicles from April 2020.
Why this policy?
There are several reasons why the government has come up with the draft of scrapping 10-year-old vehicles. There are many benefits that can be seen here.
- It is said that there will be a great positive change for the environment and the energy efficiency as well. Conserving the environment will definitely be the primary reason for the draft.
- The draft will be able to generate around Rs. 11,500 crores of domestically generated steel scrap every year through the organized shredding centers.
- This will help to reduce the burden of India’s import from foreign countries and help foreign exchange reserves.
- When implemented on trucks and buses, the reduction in CO emission would be almost 17%, and HC +NOx reduction will be 18%, and 24% reduction can be seen in PM emission.
- Vehicle owners who surrender their old vehicle will stand to benefit around 8 to 12 % of the cost of the new vehicle.
- This will increase steel demand in the country
The government is contemplating over replacement vehicles to be BS-IV compliant which will be out by April 2017. It is said that the draft of the scrapping of vehicles which are 10 years old will help to boost the sales of automobile manufacturers. This, in turn, will help production and manufacturing of vehicles. The policy will help the industry with a turnover of Rs. 20 lakh crore within the next five years. Vehicle buyers may get around 50% excise duty relief based on several lines put forth by the government.
What will be done?
For surrendering the old vehicles, people will have to deposit the copies of their registration certificate, an insurance policy of the vehicle, and proof of identity to the collection center. The collection center will then note down the details of the vehicle and the owner and then deposit the old vehicle at the collection center and collect the V-VMP certificate. The value of the scrap will be informed to the owner according to market rate. All the process is transparent and after inspection, the scrap value will be handed to the owner.