Many extend support to vehicle scrappage policy but want incentives

In an effort to cut down on air pollution and to aid the automobile industry, in the 2021 budget, Finance Minister Nirmala Sitharaman made an official announcement about India’s new vehicle scrappage policy. The new policy states that private vehicles which are over 20 years old and commercial vehicles which are over 15 years old will have to face fitness tests.

Throwing some light on the new policy, Union Minister for Road Transport and Highways, Nitin Gadkari, had told the media that around one crore vehicles will have to be discarded once the policy is implemented. The government hopes that when people scrap their old vehicles and choose newer vehicles, the fuel consumption will go down and this will also help reduce pollution levels.

According to the Telangana State Auto Drivers Union Joint Action Committee General Secretary D Venkatesham, there are 2.2 lakh autos plying in the Greater Hyderabad Municipal Corporation (GHMC) limits. He says the auto drivers will be happy to support the government’s initiative provided some basic points are addressed.

Speaking to TNM, D Venkatesham said, “Out of the total number of autos, only around 20,000 are over 15 years old. We have fitness tests every year and permits are renewed too every couple of years. We will be happy to support the government’s initiative provided they ensure that auto drivers get a fair price for old vehicles which they scrap. A fixed price needs to be set to ensure auto drivers are not at a loss. For those who scrap their autos, the government should also provide subsidies or concessions while buying new vehicles. This will encourage more to be part of the new policy.”

The Indian Federation of App-Based Transport Workers (IFAT) has welcomed the new policy and extended their support. They also felt the government should offer significant incentives to those scrapping their old vehicles. “Transport workers are committed to the preservation of the environment and curbing of pollution. But to off-set the financial setback for the owner-driver transport workers, the government should provide significant incentives, loans, and subsidies for purchase of new e-vehicles for commercial purposes. This will ensure a smooth and just transition towards a future safe and environmentally friendly road transport system”, said Sheikh Salauddin who is the federation’s national General Secretary.

If you consider the statistics of the Federation of App-based Transport Workers, Telangana state has 51 lakh vehicles more than 20 years old. Of these, 34 lakh vehicles are around 15 years old. If you consider only Hyderabad, around six lakh vehicles are about 15 years old, out of which, five lakh are bikes and 1 lakh are cars. Autos, taxis, lorries, trolleys and other commercial vehicles constitute around 70,000 vehicles.

The Federation also said that the central government should direct the state governments to reduce levy of statutory liabilities like Octroi, Sales-tax, Vehicle Registration fee, Road Tax etc.

H Varalakshmi, an entrepreneur, said that the government must identify sector-wise contribution to pollution and act on the major pollutants instead of cracking the whip indiscriminately. She said, “We bought our vehicle in 2008 and it is 13 years old now. It is still in a very good condition. Buying the car itself was a big task for me as I had to take a loan and I ended up paying one-third of the loan amount as its interest. If suddenly the government forces me to scrap my vehicle, it should at least guarantee me some incentives including a rebate in the interest rate.”

There is still lack of clarity about the details of the new policy, meaning that not only will people have to await those, but will also need time to come to terms with them.