The Union Ministry of Road Transport and Highways has issued three draft notifications proposing amendments in the regulatory framework related to scrapping of end-of-life vehicles. These notifications propose that the details regarding cancellation of registration of vehicles, issue of certificate of deposit and certificate of vehicle scrapping are updated on the Vahan portal and the national motor vehicle database in real time. These notifications are collectively intended to simplify and digitise the vehicle scrapping process for all stakeholders such as vehicle owners, registered vehicle scrapping facility (“RVSF”), dealers, Government authorities, etc. It also prescribes fixed timelines for the ease of doing business.
After acceptance of vehicle for scrapping, original certificate of registration shall be defaced and a digitally signed Certificate of Deposit shall be issued as proof for submission of vehicle for scrapping. These certificates can be traded and utilised for claiming benefits for purchasing new vehicles. The scrapping facility shall ensure that removal, recycling or disposal of hazardous parts of the scrapped vehicle is done as per Central Pollution Control Board’s guidelines for Environmentally Sound Management of End-of-Live Vehicles and AIS129. After scrapping of vehicles, scrapping facility shall issue a digital Certificate of Vehicle Scrapping. All these records shall be uploaded on Vahan portal.
As per the Ministry, these proposed amendments would be suitably amended after comments are received on the regulatory framework and proposed processes from stakeholders in the vehicle scrapping industry. Whenever implemented, these notifications are expected to encourage scrapping of end-of-life vehicles, which will not only solve the problem of air pollution by taking old polluting vehicles off the roads but will also provide valuable resources for manufacturing of new vehicles through recycling and reutilisation of resources extracted from scrapped vehicles. However, there is a need to ensure that utmost precaution is taken to prevent pollution or contamination from vehicle scrapping and recycling processes.
This article was originally published in Mondaq on 19 April 2022 Co-written by: Nawneet Vibhaw, Partner, Himanshu Pabreja, Associate. Click here for original article
Contributed by: Nawneet Vibhaw, Partner, Himanshu Pabreja, Associate
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