Vehicle Fleet Modernisation Policy to be implemented in Telangana

Key measures include setting up Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations to ensure safe and eco-friendly scrapping.

Hyderabad: The State government has decided to implement Vehicle Fleet Modernization Policy in line with the recent amendments to the Motor Vehicle Act and similar to other States, aimed at providing incentives for encouraging a voluntary eco-system for phasing out end of life vehicles in the interest of road safety and clean environment.

Starting January, 2025, the state is likely to begin scrapping vehicles that are 15 years old or more and fail to pass fitness tests. These vehicles will no longer be allowed to register or operate on roads. Owners will have to either scrap their vehicles or face penalties if caught driving them.

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However, vehicles that pass the fitness test can continue running for an additional 3-5 years by paying a green tax. Incentives have been announced for those scrapping the vehicles. This policy encourages the voluntary scrapping of old, polluting vehicles providing incentives for scrapping these vehicles and buying new ones.

Key measures include setting up Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations to ensure safe and eco-friendly scrapping. Transport vehicles older than 8 years and non-transport vehicles older than 15 years will qualify for the waivers.

As per the policy, government vehicles also must be scrapped once they reach 15 years of age, regardless of their condition. The Regional Transport Authorities have earlier submitted the draft of the vehicle scraping policy for approval.

They also requested the government to address ageing government vehicles like GHMC tippers, ambulances, fire engines, and RTC buses, which contribute heavily to pollution. Three companies have already committed to establishing scrapping facilities in the state.

Telangana has over 30 lakh vehicles that are 15 years old or more, including 20 lakh from Greater Hyderabad alone. This includes 17 lakh two-wheelers, 3.5 lakh cars, and 1 lakh goods carriages. Apart from these, at least 1,000 TGSRTC buses, along with 2,000 school buses, fall into the “to be condemned” category.

Info Box:

Vehicle owners can receive two types of incentives:
> A motor vehicle tax concession when they scrap their old vehicle and buy a new one provided they submit a Certificate of Deposit.

> Waivers on certain penalties and taxes for vehicles voluntarily scrapped within two years of the policy notification.