In order to promote ease of doing business for private investors, Ministry of Road Transport and Highways has facilitated the application for grant of registration certificate to set up Automated Testing Stations and Registered Vehicle Scrapping Facilities through National Single Window System (NSWS).
Currently, 18 states are live on NSWS for accepting applications for V-VMP. The states live on NSWS are Andhra Pradesh, Assam, Bihar, Chandigarh, Delhi, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal.
The Government has received applications from 79 investors for Registered Vehicle Scrapping Facilities across 17 states out of which, 48 applications are approved by the states.
The details of Registered Vehicle Scrapping Facilities and the number of vehicles scrapped by them, are provided in the annexure.
For implementation of Voluntary Vehicle-Fleet Modernization Programme (V-VMP) or Vehicle Scrapping Policy, following steps have been taken by the Government:
(1) GSR Notification 653 (E) dated 23.09.2021 provides the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 for establishment of Registered Vehicles Scrapping Facility (RVSF).The notification has come into force with effect from 25th September, 2021.
(2) GSR Notification 652 (E) dated 23.09.2021 provides for recognition, regulation and control of Automated Testing Stations. The notification has come into force with effect from 25th September, 2021.
(3) GSR Notification 714 (E) dated 04.10.2021 provides for upward revision of registration fee, fitness testing fee and fitness certification fee of vehicles. The notification has come into force with effect from 1st April, 2022.
(4) GSR Notification 720 (E) dated 05.10.2021 provides for concession in the motor vehicle tax for the vehicle registered against submission of “Certificate of deposit”. The notification has come into force with effect from 1st April, 2022.
(5) GSR notification 272(E) dated 05.04.2022 provides for mandatory fitness of motor vehicles only through an Automated Testing Station, registered in accordance with rule 175 of the Central Motor Vehicle Rules 1989, as under –
(i) For Heavy Goods Vehicles/Heavy Passenger Motor Vehicles with effect from 01st April 2023 onwards, and
(ii) For Medium Goods Vehicles/Medium Passenger Motor Vehicles and Light Motor Vehicles (Transport) with effect from 01st June 2024 onwards.
(6) GSR Notification 695(E) dated 13.09.2022 provides for amendments in Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 earlier published vide GSR 653(E) dated 23.09.2021.
(7) GSR notification 797(E) dated 31.10.2022 provides for amendments in the rules for “recognition, regulation and control of automated testing stations” earlier published vide G.S.R. 652(E) dated 23.09.2021.
(8) GSR Notification 29(E) dt 16.01.2023 provides that Certificate of registration for vehicles owned, by Central, States and UT governments and their Departments, Local government (Municipal Corporations or Municipalities or Panchayats), PSUs and other Autonomous bodies with the Central Government and State Governments, shall not be renewed after the lapse of fifteen years.
For expediting implementation of Vehicle-Fleet Modernization Programme, Department of Expenditure, Ministry of Finance has included an incentive of Rs. 2000 crore for the states in their ongoing scheme for ‘Special Assistance to States for Capital Investment 2022-23’. A similar scheme has been continued in 2023-24 named as ‘Scheme for Special Assistance to States for Capital Investment 2023-24’. An amount of Rs. 3000 crore has been earmarked in the scheme to incentivise scrapping of old State Government vehicles which are older than 15 years, waiver of liabilities on old vehicles, provision o tax concessions to individuals for scrapping of old vehicles and setting up of automated vehicle testing facilities.
ANNEXURE REGARDING NATIONAL SINGLE WINDOW SYSTEM
State-wise details of Operational Registered Vehicle Scrapping Facilities and Number of Vehicles Scrapped (January 2022 till 20th March 2023)
| State | No. of operational RVSFs | No. of Vehicles scrapped |
| Uttar Pradesh | 4 | 6,247 |
| Gujarat | 3 | 1,244 |
| Assam | 1 | 357 |
| Madhya Pradesh | 1 | 220 |
| Haryana | 2 | 134 |
| Chandigarh | 1 | 18 |
| Grand Total | 12 | 8,220 |
This information was given by the Union Minister of Road Transport and Highways, Shri Nitin Gadkari in a written reply to the Lok Sabha.
