TAG: GS-2: POLITY AND GOVERNANCE
CONTEXT: The Delhi government has notified a new tax rebate incentive scheme under which owners of their old petrol and diesel vehicles that have completed 15 years and 10 years of service will get a rebate on registering a new vehicle.
EXPLANATION:
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- Delhi government has expressed concern about environmental issues as the pollution in Delhi is increasing daily. The government has taken some steps to reduce pollution caused by old vehicles.
- The Government of India will develop a portal for single window clearance, on which the applicant will apply with documents and fee. State/UT governments would clear the proposal in a time-bound manner, that is, 60 days.
- These RVSFs shall be provided access to the VAHAN database and shall be authorized to make entries regarding scrapping of the vehicle and issuance of Scrapping Certificate.
- The rules specify the technical requirements and procedure to be followed by any legal entity for setting up RVSF.
- The application process is proposed to be made seamless, transparent and time-bound for registration, inspection and audit of RVSF.
- The RVSF must take cyber security certifications for safe access to VAHAN database. The registration of an RVSF shall be valid for an initial period of 10 years, and renewable for 10 years at a time.
- Besides the requirement for having certified equipment for de-polluting, de-risking and dismantling End of Life Vehicle (ELV), the RVSF will have to comply with relevant health and safety legislation/regulation and environmental norms laid down by MoEF&CC and CPCB/SPCB for such operations.
- In case the RVSF does not have adequate capability for recycling of hazardous waste (like e-waste, batteries, or for recovery of rare earth metals, etc.), then such materials can be sold to duly authorized recyclers.
- The RVSF, after verifying the original documents from the owner / representative and records of the vehicles, issues the ‘Certificate of Deposit’, which can be used to avail incentives and benefits for purchase of a new vehicle.
- The RVSF shall keep safe custody of cut piece of Chassis Number for a period of 6 months from the date of issue of ‘Certificate of Vehicle Scrapping’ and maintain a copy of all documents for record and examination during audit.
Significance of Registered vehicle scrapping facility:
- Pollution Control: RVSFs help to systematically retire old, polluting vehicles, which are significant contributors to air pollution. By scrapping vehicles that exceed certain age limits (typically 15 years for petrol and 10 years for diesel vehicles), RVSFs reduce emissions and support cleaner air quality, especially in urban areas with high vehicular traffic.
- As older vehicles pollute the environment 10 to 12 timesmore and estimated that 17 lakh medium and heavy commercial vehicles are more than 15 years old.
- These facilities ensure that vehicles are dismantled, recycled, or disposed of in an environmentally friendly way. Hazardous materials like batteries, oils, and fluids are safely removed, minimizing soil and water contamination.
- Employment and Economic Activity: Establishing RVSFs creates jobs in the dismantling, recycling, and waste management industries. Additionally, the sale of recovered metals and parts adds to economic activity and supports industries reliant on recycled materials.
- In the new fitness centers,35 thousand people will get employment and an investment of Rs 10,000 crores will be pumped in.
- Supports Vehicle Modernization: By incentivizing the scrapping of old vehicles, RVSFs encourage vehicle owners to upgrade to newer, more fuel-efficient, and eco-friendly vehicles. This modernization of the fleet contributes to overall road safety and compliance with current emission norms.
- The government treasury is expected to get around Rs 30,000 to 40,000 crores of money through Goods and Services Tax (GST)from this policy.
- Compliance with Government Initiatives: RVSFs align with government policies, such as the National Vehicle Scrappage Policy in India, which aims to phase out old, polluting vehicles and replace them with environmentally sustainable alternatives, thus contributing to national pollution reduction targets.
Government initiatives to curb vehicular pollution:
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