Hyderabad: The state government has announced some incentives to encourage owners to scrap vehicles older than 15 years under the voluntary vehicle fleet modernisation policy (VVMP). The policy is voluntary for private vehicles but mandatory for government-owned vehicles.
Owners of transport vehicles that are over eight years old and non-transport vehicles over 15 years old will be eligible for tax concessions when purchasing new vehicles of the same category. The state government has also announced a waiver on outstanding green tax and penalties on quarterly taxes for these vehicles, provided they are scrapped within two years of the policy’s notification.
Owners of two-wheelers costing from Rs 1 lakh to Rs 5 lakh will get tax concession from Rs 1,000 to Rs 5,000 while four-wheelers costing less than Rs 5 lakh to more than Rs 20 lakh will get tax concession from Rs 10,000 to Rs 50,000.
The date of implementation will be announced later, though the government is tentatively aiming for January 1, 2025. However, sources indicated the policy's rollout may be delayed until April, to allow time for infrastructure to be set up, such as registered vehicle scrapping facilities (RVSF) and automated testing stations (ATS).
The VVMP is designed to address two major concerns: road safety and vehicular pollution. By encouraging the scrapping of older vehicles, the policy aims to remove unfit vehicles from the roads. The policy seeks to align with recent amendments to the Motor Vehicles Act, 1988, to ensure compliance with national safety and environmental standards.
In addition to voluntary measures for private vehicles, the policy mandates that all state-owned vehicles older than 15 years be scrapped through e-auctions. Registration renewals for these vehicles under Section 52A of the Motor Vehicles Act will no longer be permitted.
The government has allocated Rs 296 crore to set up 37 automated testing stations (ATS) across the state, including four in Hyderabad. These ATSs will gradually replace manual testing at regional transport offices (RTOs).
The transport commissioner will serve as the registering authority for these ATSs, while the special chief secretary, transport, will act as the appellate authority.
The state also plans to introduce digital solutions, such as the Sarathi and Vahan platforms, to streamline the registration, scrapping, and testing processes. These platforms will simplify procedures for vehicle owners, enhancing the policy’s accessibility and efficiency.
Transport commissioner Ilambarthi K. said that state-owned vehicles more than 15 years old will no longer be allowed to renew their registrations.
