The Indian government has set a target to facilitate the setting up of 50-70 Registered Vehicle Scrapping Facilities (RVSFs) across the country over the next five years, minister for road transport and highways, Nitin Gadkari, said in a statement on Wednesday, December 29.
The minister said that the comprehensive infrastructure being set up will increase the value from vehicle scrapping from 70 percent at present to 90 percent.
He said that the government has announced a “citizen-centric” vehicle scrapping policy under which voluntary scrapping is being targeted, based strictly on fitness, irrespective of the age of the vehicle. If a vehicle fails an automated fitness test, it will be permitted a re-test after the necessary repairs, and a re-inspection, if ordered by the Appellate Authority. After this, it will be declared an End-of-Life Vehicle (ELV).
In recent months, companies floated by domestic automobile majors like Mahindra Cero, Tata Motors and Maruti Suzuki Toyotsu have inked agreements with various state governments to set up vehicle scrapping units.