STOCK MARKET BSE NSE

SIAM supports draft guidelines on authorised vehicle scrapping facility

Individuals, firms society or trust will be allowed to set up scrappage facility subject to meeting eligibility criteria and receiving authorisation from licensing authority.

Published: 17th October 2019 03:15 PM  |   Last Updated: 17th October 2019 03:15 PM   |  A+A-

By PTI

NEW DELHI: Auto industry body SIAM on Thursday said the draft guidelines on authorised vehicle scrapping facility (AVSF) in India will help in setting up of such facilities in an organised manner while reiterating that the sector is waiting for incentive-based Vehicle Scrappage Policy from the government.

Welcoming the draft guidelines released by the Ministry of Road Transport & Highways for setting up of AVSF, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said the automobile industry wholeheartedly supports the vehicle scrappage initiative of the government.

"The draft guidelines will help in establishing organised vehicle scrapping facilities in the country and will lead to an increase in latent demand for end-of-life vehicles available for scrapping," he said in a statement.

Vehicle scrappage initiative of the government will not only help in removing old and polluting vehicles from roads, but will also increase demand for new vehicles having better emission technology, meeting superior safety standards and at the same time lead to savings of the fuel, foreign exchange, raw material, Wadhera added.

Seeking an early scrappage policy, he said, "automobile industry keenly awaits an incentive-based vehicle scrappage policy also from the government, which will help fleet modernisation on a regular basis."

As per the draft AVSF guidelines, individuals, firms society or trust will be allowed to set up scrappage facility subject to meeting eligibility criteria and receiving authorisation from licensing authority.

The authorisation will be valid for 10 years which shall be renewable for another 10 years. Prospective scrappers must have usable treatment with a minimum area of 4,000 sq metre for small vehicles and 8,000 sq metres for all other bigger vehicles.

Vehicles which have not renewed original registration, not been granted fitness certificate and those auctioned, impounded and abandoned by any enforcement agency, among others are allowed to be offered for scrapping.

The authorised scrapper will issue a digital certificate after the process of scrapping is completes with photographs of cut out chasis. A separate record for scrapped vehicles would be maintained on the VAHAN database by Centre.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp