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Home FINANCE Vehicle Scrappage Policy: Finance Minister issued new order! Big update on 15...

Vehicle Scrappage Policy: Finance Minister issued new order! Big update on 15 year old government vehicles

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Finance Ministry: Government employees will no longer be able to use vehicles that are 15 years old or more. Keeping in mind the pollution, passenger safety and fuel efficiency, a new order has been issued by the Finance Ministry. In an order issued by the Finance Ministry to all ministries and departments, it was said that all 15-year-old vehicles that are not fit for ‘servicing’ should be converted into junk.

Reconsidered the existing rules

The Department of Expenditure under the Ministry of Finance said in the Office Memorandum that this step is being taken keeping in mind the reduction of pollution levels, passenger safety and fuel efficiency. The memorandum said that considering the broad objectives of the government’s reform, the existing rules regarding vehicles that are 15 years old or not worth ‘servicing’ were reconsidered in consultation with NITI Aayog and the Ministry of Road Transport.

15 year old vehicles will be converted into scrap, said the official memorandum. After this it was decided that the vehicles of the ministries/departments which are 15 years old or not fit for ‘servicing’ will be converted into scrap. It said that such vehicles will be disposed of at the registered vehicle scrap center only. Vehicles that are 15 years old will not be auctioned. The Department of Expenditure said that detailed information about the process of converting such vehicles into scrap will be given separately by the Ministry of Road Transport.

Information was also given through social media.

Earlier, in the draft prepared by the Ministry of Road Transport and Highways, it was decided that government departments would not be able to renew the registration of 15-year-old vehicles from April 1, 2022. This includes vehicles of Central, State Government, Union Territories, PSUs and Municipal Board etc. This information was also given by the Ministry of Road Transport and Highways through social media posts.

Earlier, in the budget of the financial year 2021-22, it was announced by the government to bring voluntary vehicle scrapping policy. Under this policy, it will be necessary to conduct an automated fitness test after 20 years for personal vehicles and after 15 years for commercial vehicles. Heavy fine will be imposed on the vehicle owner for driving vehicles that do not pass this test. Apart from this, there is also a provision to seize such vehicles.

 

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