Plan to scrap old vehicles runs into wall

NEWDELHI: The Union road transport and highways ministry’s ambitious vehicle scrapping policy, which proposed a mandatory cap of 20 years on the life of all commercial vehicles starting in 2020, has hit a roadblock. The Prime Minister’s Office (PMO) has directed the ministry to take a host of measures, including more active consultations with states, before implementing the policy, three officials familiar with the matter said.

The policy, which was aimed at reducing pollution, was welcomed by vehicle makers because it meant more sales for them.

The PMO on July 9 returned the cabinet note sent by the ministry with a slew of directions, one of the officials said on condition of anonymity. The ministry had sent the cabinet note to the PMO on June 11, the official said.

Besides asking the highways ministry to consult the states on the “framework” of the scheme, the PMO has directed that the scheme be made “voluntary” and “linked with incentives which should originate from manufacturers,” a second official said.

“The PMO has said that the expenditure details of the scheme should be firmed up on the basis of incentives,” the second official added.

The vehicle scrapping policy is partly aimed at reducing pollution. India has 700,000 trucks, buses and taxis manufactured before December 31, 2000 that contribute 15-20% of vehicular pollution, according to an analysis by AT Kearney based on data from the Central Pollution Control Board and Union road ministry emission norms. The ministry had expected 350,000 vehicles to be scrapped in the next two to three years if the scheme received the cabinet’s green signal.

On Monday, a report released by the Centre for Science and Environment (cse), said that about 20 million vehicles had accumulated in India by 2015 that are obsolete and require scrapping. Anumita Roy Chowdury, executive director of CSE, said on Tuesday that it was important to get the policy framework right. “Because scrapping policy has to be combined with proper end-oflife regulation.”

THE PMO HAS ASKED THE ROAD TRANSPORT MINISTRY TO CONSIDER MORE OPTIONS AND INPUTS BEFORE PUSHING THE POLICY