Context
India’s vehicle scrapping policy has now been launched. The launch of India’s vehicle scrapping policy, or the “Voluntary Vehicle-Fleet Modernisation Programme”, seeks to usher in a new age of what it means to own and use an automobile in India.
- It is aimed towards creating a viable circular economy.
About the Vehicle Scrappage Policy
- It will help to create a viable circular economy and bring value for all stakeholders while being environmentally responsible.
- The policy dictates that all automobiles over a certain age should be off the roads in the interest of better pollution control and safety, which new vehicles ensure.
- Commercial vehicles over 15 years old and personal vehicles over 20 years old are marked for scrapping, it doesn’t matter if they run on diesel or petrol, if they fail an automated fitness test. These will be deregistered; the owner can choose to scrap them, but cannot use them on the road.
- India has 51 lakh light motor vehicles that are more than 20 years old and 34 lakh over 15 years old.
- Around 17 lakh medium and heavy commercial vehicles are older than 15 years without valid fitness certificates, according to data with the Ministry of Road Transport and Highways.
What is a circular economy?
- A circular economy depends on reuse, sharing, repair, refurbishment, remanufacturing and recycling of resources to create a closed-loop system, minimising the use of resources, generation of waste, pollution and carbon emissions.
- When a car is scrapped, apart from metals including iron and steel, many other parts may emerge that can be refurbished and ploughed back into use. Recycled steel from scrap, even seats and plastic parts, have value in the scrap economy. It is similar to the economic activity of scrappage of old ships, like in Alang shipbreaking yard in Gujarat.
- In a circular economy, products, materials, equipment and infrastructure are kept in use for longer, thus improving productivity.
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- The government has come out with rules and specifications on what kind of Automated Fitness Centres should come up and who can set them up. It has also come up with how the scrapping yards should be.
