Ensuring efficiency, better transportation
Safe and efficient vehicles are being ensured across the country so that a better transport system is put in place and pollution levels across the regions too are brought down to acceptable levels.
In Jammu and Kashmir too efforts are being put in to ensure that old and unfit vehicles are replaced in a phased manner so that the entire transport sector witnesses a paradigm shift.
Notably, older vehicles emit more pollutants, cost more to maintain, and often fail safety checks. The government’s Vehicle Scrapping Policy (2021‑22) aims to phase out unfit vehicles, offering incentives like a scrap value of 4‑6 % of the ex‑showroom price of a new car and waivers on registration fees.
It is in this backdrop that the government here is trying to ensure effective implementation of the Registered Vehicle Scrapping Policy. The government order issued in this regard outlines the guidelines for implementation of the Motor Vehicle (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 in the Union Territory of Jammu & Kashmir. These guidelines aim to reduce pollution, enhance road safety and foster a circular economy through responsible vehicle recycling.
The policy targets vehicles that are 15 years old or more, as well as those, that are unfit for road use due to accidents, disasters or natural wear and tear.
Interestingly, the vehicle owners can voluntarily scrap their vehicles at a Registered Vehicle Scrapping Facility (RVSF) and receive a Certificate of Deposit (COD), which will serve as a key document for availing of incentives on purchase of new vehicles.
The owners of vehicles that are scrapped will benefit from fiscal incentives including exemptions in road tax (up to 26% for non-transport vehicles and 16% for transport vehicles) if they opt to buy new vehicles within a specified period.
What is interesting to note is that the government is providing support for establishing the RVSF as it aims to offer incentives and land bank support for setting up these facilities across Jammu & Kashmir. The existing industrial policies will offer fiscal incentives for establishment of these facilities, which will play a key role in modernizing the local auto industry.
All RVSFs will need to comply with the Motor Vehicle (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 and undergo environmental clearance from the Jammu & Kashmir Pollution Control Committee.
Since the government has shown a keen interest in implementing the Registered Vehicle Scrapping Policy it should also ensure that the scrapping process should be carried out in a scientifically sound manner to promote recycling and minimize environmental impact, in line with the Environment Protection (End of Life of Vehicle) Rules, 2025.
Importantly, the implementation of the policy will create a thriving business ecosystem in the vehicle scrapping and recycling industry. This will not only contribute to the economic development of Jammu & Kashmir but also create significant employment opportunities in various sectors including automotive dismantling, recycling, and logistics.
