State govt to implement vehicle fleet modernisation policy

Hyderabad: The State government has announced the implementation of a vehicle fleet modernisation policy (VFMP) aligning with amendments to the Motor Vehicle Act. The policy encourages the voluntary scrapping of old vehicles, promoting road safety and a cleaner environment. The policy provides for the establishment of registered vehicle scrapping facilities (RVSFs) and automated testing stations (ATS).

According to the Transport Department, through the policy, pollution will be reduced by voluntary scrapping of old and unfit vehicles; improve road, passenger, and vehicular safety; improve fuel efficiency; and reduce maintenance costs for vehicle owners.

Scrapping of end-of-life vehicles will lead to substantial reductions in emissions due to pollution. To the extent of privately owned vehicles through the voluntary vehicle scrapping policy, the government is trying to promote scrapping of end-of-life vehicles by offering incentives in two types of concessions.

An official release said the amendments to the MV Act, 1988, including GSR Number 652 (E), 653 (E) from September 2021, GSR No 720 (E) from October 2021, and more recent updates such as GSR No. 29 (E) from January 2023, and GSR No. 663 (E) from September 2023, provide the legal framework for establishing RVSF and ATS. The changes enable the creation of an efficient scrapping infrastructure across Telangana, benefitting both the environment and economy.

RVSF is to promote safe scrapping of vehicles, enhance value discovery, and ensure that vehicles are scrapped in an environmentally friendly and safe manner. Transparent operation of ATS forms the backbone for the smooth implementation of VFMP. It will create a robust eco system for safe roads and a well-structured scrapping policy, thereby increasing the overall road safety of all users. The policy is a multi-dimensional policy with a positive impact on the economy, generating employment, and creating a clean environment.

The government has approved the establishment of 37 automated testing centres across the State, including four in Hyderabad. Each centre will require an investment of Rs 8 crore, with a total budget allocation of Rs 296 crore for the project. The implementation will be managed by Saradhi Vahan, and software upgrades are expected to facilitate the process.

Private vehicle owners with vehicles over 15 years old will be eligible for a reduction in the life tax if they register their vehicles for scrapping and purchase a new vehicle within the next two years. Additionally, the government vehicles that are more than 15 years old will be scrapped as per the policy, and their registration renewals under Section 52A of the MV Act will not be allowed.

Under the MV Tax concession, vehicle owners who voluntarily scrap their old vehicles and purchase a new vehicle of the same category will receive a concession between Rs 1,000 and Rs 5,000 for two-wheelers and Rs 10,000 and Rs 50,000 for four-wheelers for non-transport vehicles on MV Tax upon submission of a certificate of deposit.

A 10 per cent tax concession is applicable to all construction equipment vehicles. A 10 per cent tax concession will be provided for newly registered transport vehicles and LMV tractors. The concession will apply to quarterly or yearly taxes for up to eight years from the date of registration.

Under the one-time waiver of liabilities, a waiver will be provided on penalties for quarterly tax and green tax for vehicles voluntarily brought in for scrapping within two years of the policy implementation.

Moreover, with Rule 52A of the Central MV Rules 1989, the government has also mandated the scrapping of outdated government vehicles. This applies to vehicles owned by State departments, municipal corporations, and transport authorities. By scrapping old government vehicles, the State aims to set an example for private vehicle owners, encouraging the adoption of the eco-friendly initiative.