The Ministry of road transport and highways has notified the draft guidelines for "setting up, authorisation and operation of Authorised Vehicle Scrapping Facilities (AVSF) in the country". The draft policy has been published on the transport ministry website for comments from all stakeholders, including general public. Suggestions on the draft guidelines have to be furnished by November 15, the ministry said in a statement.
The scrappage facilities would be allowed to scrap vehicles with outdated registration, unfit to run, or impounded or abandoned by enforcement agencies. Vehicle manufacturers could also send rejected units or test mules for disposal at these facilities.
The transport ministry proposed that the AVSFs shall be provided access to the VAHAN database so that they can make necessary entries regarding scrapping of vehicles. VAHAN database is a repository of information that deals with activities like vehicle registration, permit, taxes and more.
The draft policy has asked states and union territories to promulgate eligibility conditions for granting authorisation to AVSFs in light of certain requirements, including valid Permanent Account Number and GST registration. The guidelines also called for adherence to regulations of Central Pollution Control Board to be checked before granting authorisation to scrappage facilities.
The transport ministry draft guidelines also called for installing CCTV camera at the scrapping yard, customer and vehicle reception area. The records of the scrapping should be saved in the scrappers records for a period three months and should be produced before authorised agencies when demanded.
On August 23, Finance Minister Nirmala Sitharaman had said that government would consider several measures, including scrappage policy, to boost demand in the auto sector. Once a booming industry, the Indian auto sector has been going through a slump for the past 11 months. In September though, stakeholders could see some green shoots of recovery on account of the festive season in October and November.