Union Road and Transport Minister announced the #VehicleScrappingPolicy in the Lok Sabha.
It was first announced in the Union Budget for 2021-22.
The policy is estimated to cover 51 lakh Light Motor Vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs above 15 years of age.
As Per Section 59 of Motor Vehicle Act 1988, the Central government hereby notifies the following guidelines for setting up, authorization and operation of AVSF (#AuthorizedVehicleScrappingFacility) in the country.
Vehicles which are no longer Validly Registered Under Section 41 of the Motor Vehicle Act 1988, or where the owners are desirous of scrapping their vehicles.
OBJECTIVE:
• It will help improve fuel efficiency and reduce pollution. As older vehicles pollute the environment 10 to 12 times more, and estimated that 17 lakh medium and heavy commercial vehicles are more than 15 years old.
• It will lead to creation for more scrap yards in the country and effective recovery of waste from old vehicles.
• In the new fitness centers, 35 thousand people will get employment and an investment of Rs 10,000 crores will be pumped in.
• This will boost sales of heavy and medium commercial vehicles that had been in the contraction zone as a result of economic slowdown triggered by the bankruptcy of IL&FS (Infrastructure Leasing & Financial Services) and Covid-19 pandemic.
• The government treasury is expected to get around Rs 30,000 to 40,000 crores of money through Goods and Services Tax (GST) from this policy.
• Prices of auto components would fall substantially with the recycling of metal and plastic parts
• As scrapped materials will get cheaper the production cost of the vehicle manufacturers will also reduce.
Important Terms:-
• Authorized Scrapper means means a person, firm, society, trust or company owning and operating an Authorized Vehicle Scrapping Facility (ASVF).
• Authorized Vehicle Scrapping Facility (ASVF):- It means any establishment which holds an Authorization for Vehicle Scrapping issued under these guidelines for carrying out dismantling and scrapping operations.
• Certificate of Deposit:- It means the certificate issued by the ASVF to recognize the transfer of ownership of the vehicle from the registered owner to the Authorized scrapper for further treatment.
• Certificate of Vehicle Scrapping:- It means the certificate issued by an AVSF to recognize the final disposal of vehicle and is to be preserved by the Authorized Scrapper.
• End of Life-Vehicles (ELV): It means all vehicles which are no longer validly registered, or their registrations are cancelled under Chapter IV of the Motor Vehicles Act 1988, or due to an order of court of Law, or self-declared by the legitimate registered owner as a waste vehicle due to any circumstances that may arise from fire, damage, natural disaster, riots or accidents etc.
• Final Disposal: It means when the treatment of the vehicles has been completed and the vehicle which is no longer capable of being used and the disposal of its engine in accordance with CPCB Guidelines.
• Scrapping Yard: It means the designated location within the premises of the AVSF where dismantled vehicle parts are processed for further treatment by way of shredders or any other machinery into scrap parts that are sold to recycling companies.
• Ware House: It means a designated location within the AVSF where processed scrap and usable parts are refurbished, catalogued, stored, and sold for re-use.
Conditions of Eligibility:-
The eligibility conditions for grant of authorization for treatment of end of life vehicles in an AVSF by respective State/UT government are:-
• The AVSF must be owned and operated by any legal entity be it a person, firm, society or trust established with applicable laws.
The entity must possess:-
1. Certificate of Incorporation
2. Valid GST registration
3. Valid PAN
The entity:-
1. Should have or applied for Establishment License from the authority
2. Should meet the minimum technical requirements for collection and dismantling centers as per pollution control board, should have manpower and equipment to carry out dismantling activities.
3. Shall undertake to obtain required quality certifications within 12 months of commencement of operations
4. Should provide approved Plant Layout and building Plan and also have environment management plan for the facility.
Validity and Renewal of Authorization:
The Authorization is valid for period of 10 years, which shall be renewed for another 10 years. The Authorization shall not be transferable
Phone:- 9121230280
Email:- info@corpbiz.io
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