India needs 1,000 scrapping centres, 400 fitness test points: Nitin Gadkari

India needs 1,000 scrapping centres, 400 fitness test points: Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari on Monday said the country needs 1,000 vehicle scrapping centres and 400 automated fitness test centres.

Launching 'DigiELV', Gadkari said the road ministry has so far approved 85 vehicle scrapping facilities across the country.

"We need 1,000 vehicle scrapping centres in the country and at least 400 automated fitness test centres," he said.

DigiELV is a trading platform for End of Life Vehicle Certificate of Deposit. Anyone who owns a Certificate of Deposit (CD) can sell it through the platform. A CD is issued when a user submits a vehicle for scrapping at a Registered Vehicle Scrapping Facility (RVSF).

Noting that the National Vehicle Scrappage Policy is a win-win for all stakeholders, the minister said India can be a scrapping hub in South Asia.

"Circular economy is very important and it is going to create jobs in the country," Gadkari said.

Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021 and said it would help phase out unfit and polluting vehicles and also promote a circular economy.

Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles. The vehicle scrappage policy has come into effect from April 1, 2022.

Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.

DigiELV, in its beta phase over the last three months, facilitated the trade of more than 800 certificates, directly benefiting End of Life Vehicle Owners. This platform empowers users to lawfully trade certificates of deposit, promoting transparency and ensuring sustainable efforts of ELV owners are rewarded.