As pollution has become the burning problem of the day, the government is trying all means to reduce air pollution. With an aim to curb vehicular pollution by scrapping old commercial vehicles that emit toxic gases,  the Road Transport and Highways Ministry wants to accelerate the growth of  vehicle scrapping industry. The Ministry has proposed a draft policy in which buyers would not have to pay registration fees for new vehicles if they present a scrapping certificate from an authorized scrapping agency.

According to the draft notification, a newly purchased vehicle will be exempted from paying registration fees if it is presented along with the scrapping certificate of a previously owned vehicle.The scrapping certificate has to be issued by an authorized scrapping centre and the same has not been utilised in any past cases.

The draft also proposes to increase the charges for  renewing registration certificates and newer registration marks The fitness certificate of 15 years old vehicles  have to be renewed every six months. It also wants to encourage electric vehicles and ensure user friendly measures like priority seats, signs, securing of crutches, walkers and hand rails for the disabled persons in buses. Fitness certificates for buses will be issued on the availability of these features.

Mahindra Accelo (a fully owned subsidiary of Mahindra) has formed a joint venture with MSTC for  setting up scrappage  centres under a new brand, CERO (Mahindra MSTC Recycling Pvt Ltd).They have the power to certify the owners of scrapped vehicles. Automobile firms now feel that a scrappage policy would trigger their business.