Vehicle Scrappage Policy -An effort to reduce air pollution and improving road safety

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India’s Vehicle Scrappage Policy

India’s Vehicle Scrappage Policy, introduced in 2021, is a government initiative aimed at phasing out old, inefficient, and polluting vehicles from the roads. This policy is part of India’s broader efforts to reduce air pollution, improve road safety, and promote the adoption of cleaner, more fuel-efficient vehicles.

Key Features of the Vehicle Scrappage Policy:

1. Mandatory Fitness Tests:
   • Under the policy, all commercial vehicles over 15 years old and personal vehicles over 20 years old must undergo mandatory fitness tests to determine their roadworthiness and emission standards.
   • Vehicles that fail these tests are classified as “end-of-life” vehicles and are required to be scrapped.
2. Incentives for Scrapping:
   • The policy provides financial incentives to encourage owners to scrap their old vehicles voluntarily. These incentives include discounts on the purchase of new vehicles, exemptions from registration fees, and potential tax rebates.
   • Additionally, the scrap value of the old vehicle, typically ranging from 4% to 6% of the ex-showroom price of the new vehicle, is provided to the vehicle owner.
3. Establishment of Scrappage Centers:
   • The government aims to establish a network of automated scrappage centers across the country. These centers will ensure that the scrapping process is environmentally friendly and adheres to the guidelines set by the government.
   • The policy also encourages private sector participation in setting up scrappage centers.
4. Reduction in Emissions:
   • By removing older, more polluting vehicles from the roads, the policy is expected to significantly reduce vehicular emissions, particularly of particulate matter (PM) and nitrogen oxides (NOx), which are major contributors to air pollution.
   • The policy also aligns with India’s goals of reducing carbon emissions and meeting international climate commitments.
5. Boost to the Automobile Industry:
   • The scrappage policy is expected to create demand for new vehicles, thereby providing a boost to the automobile industry. It also encourages the adoption of newer, more fuel-efficient, and environmentally friendly vehicles.
   • The recycling of materials from scrapped vehicles is anticipated to support the manufacturing sector by providing a steady supply of raw materials like steel, aluminum, and plastic.
6. Road Safety:
   • By phasing out old vehicles that are more prone to breakdowns and accidents, the policy aims to enhance road safety across the country.

Implementation Challenges of vehicle scrappage policy:

While the Vehicle Scrappage Policy has several potential benefits, it also faces challenges:

• Infrastructure: The success of the policy depends on the establishment of sufficient scrappage centers and testing facilities across the country, which is still in progress.
• Public Awareness: There is a need for increased public awareness and education about the benefits of the policy and the process of scrapping vehicles.
• Voluntary Participation: As of now, the scrappage of old personal vehicles is voluntary, which may limit the policy’s impact unless more stringent measures are implemented.

Conclusion:

India’s Vehicle Scrappage Policy is a crucial step towards reducing vehicular pollution, promoting road safety, and fostering sustainable development in the automobile sector. While its successful implementation requires overcoming infrastructural and awareness challenges, the policy has the potential to significantly benefit both the environment and the economy.

India’s Vehicle Scrappage Policy, introduced to phase out old and polluting vehicles, has seen gradual implementation with a focus on building necessary infrastructure and incentivizing compliance. As of mid-2024, the policy has led to the establishment of 60 Registered Vehicle Scrapping Facilities (RVSFs) and 75 Automated Testing Stations across the country. The policy aims to address environmental concerns by decommissioning vehicles that fail to meet fitness standards after a set period—15 years for commercial vehicles and 20 years for personal vehicles.

In the Union Budget 2023-24, the government allocated funds specifically for scrapping and replacing old government vehicles. This includes central support for states to replace outdated vehicles, including ambulances. The policy offers incentives like a scrap value rebate and a discount on new vehicle purchases against a scrapping certificate to encourage the public to scrap their old vehicles. However, full-scale adoption of the policy has been slower than expected, partly due to public hesitancy and the voluntary nature of the scrapping initiative in some states

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The State of Air Pollution in India

A recent report highlights that India is home to 83 of the 100 most polluted cities in the world. Another study published in the British Medical Journal estimates that air pollution is responsible for 2.1 million deaths in India, making it the second-highest in the world, following China. Alarmingly, over 99% of the Indian population breathes air that falls below the standards recommended by the World Health Organization (WHO).

The Severity of Air Pollution in India

The International Energy Agency estimates that 12% of India’s CO2 emissions come from road transport, with heavy vehicles being the primary contributors to Particulate Matter (PM) 2.5 emissions.

PM2.5 particles are particularly dangerous because their microscopic size allows them to penetrate deep into the lungs and enter the bloodstream, leading to various respiratory and cardiovascular issues. Additionally, heavy vehicles are significant sources of Nitrogen Oxide (NOx) emissions, which contribute to similar health problems and play a role in the formation of ground-level ozone. This, in turn, exacerbates air quality and heat issues, further intensifying urban air pollution. Studies suggest that heavy vehicles are responsible for 60-70% of total vehicular PM emissions and 40-50% of total NOx emissions in urban areas.

Measures to Combat Air Pollution in India

As India’s transport sector grows at a rate of 9.1% annually, the Bureau of Energy Efficiency’s (BEE) initiative to draft Corporate Average Fuel Economy (CAFE) norms for cars is both timely and commendable. The planned implementation of CAFE III from 2027-2032 and CAFE IV from 2032-2037 is practical. The shift from the Modified India Driving Cycle (MIDC) to the World Light Duty Vehicle Testing Procedure (WLTP) by March 31, 2027, is a positive step. The WLTP provides a more accurate and globally harmonized assessment of vehicle fuel consumption and CO2 emissions.

The proposed emission targets for CAFE III, set at 91.7g CO2/km, and for CAFE IV, set at 70g CO2/km, are ambitious yet achievable. These stringent CO2 targets are crucial for driving innovation and encouraging the adoption of cleaner technologies. For the sake of public health and environmental protection, these targets should be non-negotiable. However, it is important to note that the CAFE norms currently exclude emissions from heavy vehicles such as trucks, lorries, and other freight vehicles.

Further Steps Needed

In 2021, the government introduced a vehicle scrappage policy aimed at phasing out old and polluting vehicles, including heavy vehicles. This policy mandates that passenger vehicles older than 20 years and commercial vehicles older than 15 years must pass a “fitness and emissions test.” Vehicles that fail these tests are classified as end-of-life vehicles, leading to the cancellation of their registration certificates and recommending them for scrapping.

Despite this, the policy has struggled to gain traction in Karnataka due to two main issues: the state has only two scrapyards, and the policy is voluntary. In Bangalore, most older vehicles are not private cars but BMTC buses, private vans, and heavy vehicles. Although Maharashtra is among the 21 states offering incentives like road tax discounts or rebates on new vehicle purchases to encourage scrapping, the impact on air pollution has been minimal. Policymakers must ensure that such guidelines are implemented rigorously rather than remaining as mere examples of good intentions.

Existing government policies to combat air pollution, such as regular vehicle emission testing, banning open garbage burning, and monitoring industrial emissions, need to be enforced with the utmost strictness. While the government’s efforts to curb air pollution are commendable, it is essential to recognize that mass transit is the most sustainable solution to tackling air pollution in India.

The World Light Duty Vehicle Test Procedure (WLTP)

The World Light Duty Vehicle Test Procedure (WLTP) is a global standard used to measure the emissions, fuel consumption, and electric range of light-duty vehicles, including passenger cars and light commercial vehicles. This procedure was developed under the auspices of the United Nations Economic Commission for Europe (UNECE) to provide a more accurate and realistic representation of real-world driving conditions compared to previous test cycles like the New European Driving Cycle (NEDC).

Key Aspects of WLTP:

1. Dynamic Driving Cycle: WLTP testing involves a more dynamic driving profile, with more accelerations and decelerations, and a wider range of driving conditions (urban, suburban, and highway).
2. Longer Test Duration: The WLTP test is longer than the NEDC, taking about 30 minutes compared to 20 minutes in NEDC.
3. Higher Average and Maximum Speeds: The WLTP cycle includes higher average and maximum speeds, reflecting a more realistic driving experience.
4. Stricter Test Conditions: WLTP tests are conducted under more stringent conditions, including varying temperatures and additional testing of optional equipment (like air conditioning and different tire types) that can affect fuel consumption and emissions.
5. Different Vehicle Configurations: WLTP takes into account different vehicle variants and optional features, meaning the test results can be more specific to the exact configuration of the car.
6. Global Adoption: While WLTP was initially developed for the European market, many other countries and regions have adopted or are in the process of adopting the WLTP as their standard for vehicle testing.

Impact of WLTP:

• More Accurate Results: The WLTP provides more accurate and realistic data on fuel consumption, CO2 emissions, and electric vehicle range, helping consumers make better-informed decisions.
• Impact on CO2 Standards: Since the WLTP generally results in higher reported emissions and fuel consumption, automakers have had to adjust their vehicle designs to meet stricter CO2 emissions standards.
• Transition Period: Many countries transitioned from NEDC to WLTP in the late 2010s, and during this period, both figures were often provided to consumers to ease the transition.

Overall, the WLTP is a significant improvement over older testing procedures, reflecting more closely how vehicles are used in real-world conditions.

Recent development on 28/8/2024

The Ministry of Road Transport and Highways (MoRTH) has unveiled a groundbreaking initiative, the Voluntary Vehicle Modernization Program, commonly known as the Vehicle Scrapping Policy. This ambitious program is set to transform India’s automotive landscape by phasing out old, polluting vehicles and replacing them with safer, more efficient models. The policy aims to create a robust ecosystem for vehicle scrapping through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs).

A Network of Modern Facilities

Currently, there are over 60 RVSFs spread across 17 states and Union Territories, and more than 75 ATSs operational in 12 states. These facilities are the backbone of the Vehicle Scrapping Policy, ensuring that vehicles are tested, scrapped, and replaced in an environmentally friendly manner.

Industry Collaboration for a Greener Future

The Vehicle Scrapping Policy has garnered significant support from the automotive industry. Union Minister for Road Transport & Highways, Shri Nitin Gadkari, recently held discussions with top CEOs from the Society of Indian Automobile Manufacturers (SIAM). During this interaction, the focus was on promoting the scrapping of old Commercial and Passenger Vehicles and encouraging the adoption of newer, less polluting models.

In a move that highlights the importance of Fleet Modernization and the Circular Economy, several major vehicle manufacturers have pledged to offer discounts for a limited period. These discounts are available against a Certificate of Deposit (Scrappage Certificate), which vehicle owners receive when they scrap their old vehicles.

Incentives for Commercial Vehicles

Leading Commercial Vehicle manufacturers like Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, and Mahindra & Mahindra have committed to offering discounts on new purchases when old vehicles are scrapped. For instance, a discount equivalent to 3% of the Ex-Showroom Price will be provided for scrapping commercial cargo vehicles weighing over 3.5 tonnes. A similar discount structure is available for lighter vehicles, with discounts reaching up to 1.5% of the Ex-Showroom Price. These incentives are designed to encourage fleet owners to modernize their vehicles, leading to safer roads and a cleaner environment.

Benefits for Passenger Vehicles

Passenger vehicle manufacturers are also stepping up to support the policy. Brands like Maruti Suzuki, Tata Motors, Hyundai, and others are offering discounts of 1.5% of the ex-showroom price or Rs 20,000 (whichever is less) for scrapping old cars. Mercedes-Benz India has taken it a step further by offering a flat discount of INR 25,000 on top of existing offers.

These discounts are in addition to the scrap value provided by RVSFs and the various incentives offered by the government, such as motor vehicle tax concessions and registration fee waivers.

A Step Towards a Sustainable Future

The Vehicle Scrapping Policy is not just about removing old vehicles from the roads; it’s a comprehensive approach to enhancing road safety, reducing environmental impact, and fostering a sustainable automotive industry. By incentivizing the scrapping of End-of-Life Vehicles, the policy ensures that India’s roads will soon be filled with safer, cleaner, and more efficient vehicles.

As the policy rolls out across the country, it promises to revolutionize the way we approach vehicle ownership and disposal, paving the way for a greener, more sustainable future.

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