×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 27 January, 2021

  • 12 Min Read

New Scrapping Policy

New Scrapping Policy

  • The Centre’s proposed policy to raise road tax on vehicles of a certain age from April 1 next year has the potential to renew a big part of India’s vehicular fleet, reducing air pollution, raising fuel efficiency, and improving safety standards.
  • It has taken the government years to finalise a “tax on clunkers” proposal, under which commercial transport vehicles will have to pay 10%-25% extra on road tax after eight years when renewing the fitness certificate, and, similarly, personal vehicles after 15 years; public transport is given concessions, while hybrids, electrics and farm vehicles are exempt.
  • A higher tax in the most polluted cities, and on diesel engines is also on the cards.
  • States, which enforce motor vehicles law, now have to weigh in on the proposed changes.
  • Unlike similar programmes, such as the post-2008 recession CARS rebate plan in the U.S., India’s scheme relies on penal taxation to persuade owners to scrap their old vehicles, with no cash-for-trade-in arrangement.
  • For this approach to work efficiently, the additional tax proposed should exceed the resale value of the polluting motor, making its disposal more attractive, with enough safeguards to ensure that it is indeed scrapped and recycled under a monitored system.
  • Equity features can be built into the scheme, offering a discount to income-vetted marginal operators such as autorickshaw drivers, on the lines of the 2009 stimulus given under the JNNURM scheme for buses.
  • This should ideally be part of a green post-pandemic recovery plan, with an emphasis on electric vehicles.

Analysis

  • When the scrappage policy was on the drawing board last year, Road Transport Minister Nitin Gadkari envisioned a reduction in automobile prices of 20% to 30%, driven by recovery of scrap steel, aluminium and plastic, all of which would be recycled.
  • Now that he has a better-scoped plan, the focus must be on building capacities in the organised sector to manage the task of efficient materials recovery.
  • Provisions will have to be built in to see that the sudden demand stimulus available to the auto industry does not disadvantage consumers, particularly those selling junk vehicles.
  • The vehicle registration database for all States also requires updating, to reflect true numbers of old vehicles on the road, eliminating those scrapped; a significant number, more than 15 years old, still run. Such data will help target scrappage policy benefits better.
  • Moreover, many transport vehicles are operated by small entrepreneurs who lack the resources to transition to newer ones and need help as loans and grants.
  • India’s policy to eliminate polluting fuel guzzlers has had a long gestation, and States should see the value of operationalising it as planned.
  • New vehicles and cleaner fuels should help clear the toxic air in cities and towns and make roads safer.

Source: TH


What is Mission Indradhanush ?

Mission Indradhanush was launched in 2014 under the Ministry of Health and Family Welfare.  1. Between 2009 - 2013, only 1% coverage per year has increased. We have to make it to 5%. 2. Objectives of Mission Indradhanush: We have the aim of full coverage by 2020. Cover all those children who are either unvaccinated or are part

Mediation Bill 2021 - Detailed Overview

A Bill that could alter the Mediation landscape The background behind Mediation Bill:         In General, Disputes Became part and parcel of  Day-to-Day Life. Someone or the Other belonging to family or else not a part of the family would be fighting for something. These Disputes may be for Smaller or B

Military exercises of India

List of all Military Exercises of India 2021 Military Exercises of India with Neighbours Sampriti: India & Bangladesh Mitra Shakti: India & Sri Lanka Surya Kiran: India & Nepal Hand in Hand Exercise: India & China Ekuverin: India & Maldives Military Exercises of India with Other countries Maitree Exer

Consumer Protection Rules, 2021

Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 1) Pecuniary Jurisdiction The Consumer Protection Act, 2019 The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state

Swachh Bharat Mission (Urban) 2.0

The Swachh Bharat Mission - Urban (SBM-U), launched on 2nd October 2014 aims at making urban India free from open defecation and achieving 100% scientific management of municipal solid waste in 4,041 statutory towns in the country. The objectives of the mission are mentioned below: Elimination of open defecation Eradication of Manual S

Students Achievement

Search By Date

Newsletter Subscription
SMS Alerts