Hyderabad: The State government has introduced a Vehicle Fleet Modernisation Policy (VFMP) that aligns with changes to the Motor Vehicle Act. This policy encourages people to voluntarily scrap old vehicles, promoting road safety and a cleaner environment. It also involves setting up Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATS).
According to the Transport Department, this policy aims to reduce pollution by removing old, unfit vehicles from the roads. It will also improve road safety, increase fuel efficiency, and lower vehicle maintenance costs for owners.
Scrapping old vehicles will help reduce emissions, leading to a cleaner environment. The government is offering incentives to encourage the scrapping of privately owned vehicles. These incentives come in the form of two types of concessions.
An official statement explained that recent amendments to the Motor Vehicle Act, including several Government of India orders (GSRs), provide the legal backing for setting up RVSF and ATS. These changes will help create a robust vehicle scrapping system in Telangana, which will benefit both the environment and the economy.
The RVSFs are designed to ensure that vehicles are scrapped in a safe and eco-friendly manner. The ATS will ensure smooth implementation of the VFMP by testing vehicles transparently. Together, these initiatives will create safer roads and a cleaner environment, while also boosting the economy and generating jobs.
The government has approved 37 automated testing centres across the State, with four of them in Hyderabad. Each centre will cost Rs 8 crore to build, with a total budget of Rs 296 crore for the entire project. Saradhi Vahan will manage the process, with software upgrades expected to make implementation easier.
Private vehicle owners with vehicles older than 15 years will get a reduction in life tax if they scrap their old vehicle and buy a new one within two years. For government vehicles older than 15 years, renewals under Section 52A of the MV Act will not be allowed, and these vehicles will be scrapped.
Vehicle owners who scrap their old vehicles and buy new ones of the same type will receive a tax concession. For two-wheelers, the concession ranges from Rs 1,000 to Rs 5,000, and for four-wheelers, it ranges from Rs 10,000 to Rs 50,000, depending on the vehicle type.
Additionally, a 10% tax concession will be given for all construction equipment vehicles and newly registered transport vehicles, including LMV tractors. This concession will be valid for up to eight years on quarterly or yearly taxes.
A one-time waiver of penalties on quarterly and green taxes will be offered to vehicle owners who voluntarily scrap their vehicles within two years of the policy’s launch.
Lastly, the government has mandated the scrapping of outdated government vehicles under Rule 52A of the Central Motor Vehicle Rules, 1989. This applies to vehicles owned by State departments, municipal corporations, and transport authorities. By scrapping old government vehicles, the State hopes to set a positive example for private vehicle owners to follow.
