Scrappage policy: Odisha govt ready to pull out old, unfit vehicles, customers rue low scrap value

All vehicles over 15-20 years will soon go off-road in Odisha as the State government is set to implement Central government’s vehicle scrappage policy to discard the registration of unfit vehicles, a report said on Saturday.

Not all, but vehicles that have run beyond 15 years in case of commercial vehicles and 20 years in case of personal vehicles will be scrapped under the policy. If reports are to be believed, the transport department has already started identifying the vehicles and begun the necessary process.

This new policy will phase out unfit and polluting vehicles in an environment-friendly and time-bound manner. The State Commerce & Transport Authority has informed that it will ink an MOU with a private company at the 2022 Make in Odisha Conclave.

Minister of Commerce & Transport, Tukuni Sahu said, “We are trying to do things that is better for the common people. We have sent the proposal to CM Naveen Patnaik. Further steps will be taken after his approval.”

As per the policy, the owner will get incentives worth 6% of the ex-showroom price of the new vehicle they buy and a proof certificate. One will be entitled to avail tax benefits of 25% in case of personal vehicles and 15% in case of commercial vehicles for 8 years. Moreover, they buyers can avail 5% discount while buying the new vehicle.

Commenting on the policy, Road Safety Worker, Prakash Mahapatra said, “This surely will create employment opportunities, boost trade, help in reducing pollution and improve environmental condition. We welcome this decision of the government.”

As per the available data, there are at least 16.61L old vehicles in the state out of which 8.28L vehicles are more than 20 years while the remaining 8.33L vehicles are more than 15 years.

However, many vehicle owners have expressed discontentment over low scrap value of 6%. 

“The scrap price should be around 15-20% of the ex-showroom value because 6% is too low. The vehicles should be sold as per its run time, mileage and good condition. Vehicle owners should get good price for their vehicle so that they can buy a new vehicle,” said a local, Sarthak Das. 

Worth mentioning, in 2019, the State Transport Authority (STA) of Odisha had informed that there will be no scrapping of vehicles which are more than 15 years old.

Notably, PM Modi had launched the significant policy while virtually addressing the Gujarat Investor Summit on August 13, 2021.