VOLUNTARY VEHICLE FLEET

MODERNIZATION PROGRAM (V-VMP)

 Objectives of VVMP

Voluntary Vehicle-Fleet Modernization Program (VVMP) is aimed at creating

an eco-system for phasing out of unfit and polluting vehicles
Reduce pollution by scrapping ~1 Cr vehicles without valid
fitness and registration

Improve road, passenger and vehicular safety

Boost auto sector sales and generate employment

Improve fuel efficiency and reduce maintenance cost for

vehicle owners

Formalize the currently informal vehicle scrappage

industry

Boost availability of low-cost raw materials for automotive,

steel and electronics industry
Comparison of emissions from Pre-BS and BS VI vehicles and the impact on
reduction in pollution due to scrapping of existing ELVs

Scrapping of current End-of-life vehicles (ELVs) burden of the country will

lead to 15-20% reduction in emissions due to vehicular pollution
Pre-BS Vehicles BS VI Vehicles

Equivalent
Emissions

1 Old Truck/

End-of-life vehicles
Replacement of
Bus/ Trailer 14 New Trucks/Buses/Trailers

MHCV1 End-of-life vehicle Burden – 45 Lacs 15-20%

Reduction in
emissions due to
vehicles

Equivalent
Emissions
1 Old Car/
Taxi 11 New Cars/ Taxis

LV2 End-of-life vehicle Burden – 75 Lacs

1. Medium and Heavy Commercial Vehicle such as trucks, trailers, buses etc. 2. Light Vehicles such as cars, taxis, jeeps etc.
The policy also aims at making the Indian scrappage industry
organized, transparent and environment friendly
 Present Future

Unorganized setup Organized setup

Low traceability of vehicle Collection through traceable
owner channels channels

Opaque pricing Transparent pricing

High variance in pricing, cash Index based pricing, digital
transactions payments

Fragmented Industry Economies of scale

Even large traders have 2-5 3-5x scale of large traders
KTPA1 capacity

Low value addition High value addition

Poor quality, no shredding, no Higher % recovery from scrap,
tax collection tax revenue to govt.

Lower compliance Environment friendly

Limited check on compliance Improved compliance to
to environment protection laws environment protection laws

1 Kilo Ton Per Annum

The policy targets voluntary scrapping of ~1 crore unfit vehicles strictly
based on their fitness, irrespective of vehicle age
 Commercial Vehicles (CVs) Private Vehicles (PVs)
Fitness would be
mandated through
Automated Testing
Stations for vehicles

• From 1st April 2023,

• Registration of vehicles is • First registration is valid for fitness testing for Heavy
linked to validity of the 15 years Commercial Vehicles
fitness certificate proposed to be mandated
• CVs undergo fitness test • Valid fitness certificate is through Automated
every 2 years for first necessary for renewal of Testing Stations only.
8 years and annually registration after 15 years. • For all other classes
thereafter Renewal is valid for 5 years of CVs as well as PVs,
fitness testing through
Automated Testing Station
proposed to be mandated
in phases from 1st June
2024.

If a vehicle fails an automated fitness test, one re-test after the necessary repair/rectification,
and re-inspection if ordered by the Appellate Authority, it will be declared an ELV
 Commercial vehicles to be declared as ELVs in case of failure in fitness test,
allowed re-test and re-inspection, if ordered by an Appellate Authority1

Valid fitness certificate is mandatory for renewal of

registration for commercial vehicles

New vehicle 8 years 15 years

Fitness test every two years* Fitness test every year *

*Fitness test
Validity of
conducted as Vehicle can continue to
registration ply on road
per cadence Pass
of CVs linked
given in CMVR
to fitness
certificate

Fail
Vehicle goes for allowed Vehicle will be identified
retest and appeals to as an ELV and become
Appellate Authority eligible for scrapping

1. Applicability in Delhi NCR subject to orders of the National Green Tribunal dated 26.11.2014 and 07.04.2015 passed in O.A. No. 21 of 2014. The order states that any petrol vehicle
older than 15 years and any diesel vehicle older than 10 years shall not be permitted to ply on the roads in Delhi-NCR
 Fees for conducting fitness test and granting fitness certificate have been
increased for commercial (Transport) vehicles older than 15 years

Revised Fees
Metric Vehicle category Existing Fees
(Vehicles older than 15 years)

` 600
Light Motor Vehicle – Transport ` 1,000 (automated testing)
Conducting test of a vehicle
for grant or renewal of fitness ` 1,000
certificate (for vehicles Medium Goods /Passenger Vehicle ` 1,300 (automated testing)
older than 15 years)
` 1,000
Heavy Goods /Passenger Vehicle ` 1,500 (automated testing)

Light Motor Vehicle – Transport ` 200 ` 7,500

Grant or renewal of fitness
certificate (for vehicles older Medium Goods /Passenger Vehicle ` 200 ` 10,000
than 15 years)
Heavy Goods /Passenger Vehicle ` 200 ` 12,500

1. Medium and heavy goods vehicle include trucks, trailers etc..

2. Medium and heavy passenger vehicles include buses etc.
3. Light motor vehicles – transport includes taxis, jeeps etc.
 Private (Non-Transport) vehicles to be declared as ELVs if found unfit in
fitness test, re-test and re-inspection, if ordered by Appellate Authority
at the time of renewal of registration1

Valid fitness certificate is mandatory for renewal of

registration for private vehicles

New vehicle 15 years

Registration renewed
for 5 years

No fitness test required

Pass
Registration
Fitness test required Pass
for renewal of
Vehicle goes for allowed Vehicle will be identified
registration after 15
retest and appeals to as an ELV and become
years Appellate Authority eligible for scrapping
Fail Fail

1. Applicability in Delhi NCR subject to orders of the National Green Tribunal dated 26.11.2014 and 07.04.2015 passed in O.A. No. 21 of 2014. The order states that any petrol vehicle
older than 15 years and any diesel vehicle older than 10 years shall not be permitted to ply on the roads in Delhi-NCR
 Fees for re-registration, fitness test and fitness certificate has
been increased for private vehicles older than 15 years

Vehicle
Metric Existing Fees Revised Fees
category

Issue or renewal of certificate ` 600 ` 600 (New registration)

of registration (for new registration and
Light Motor renewal of registration) ` 5,000 (Renewal of registration after 15 years)
Vehicle
(LMV) – Non-
Conducting test of a vehicle Transport
for grant or renewal of fitness
` 600 ` 1,000 (automated testing)
certificate (for vehicles older
than 15 years)

1. Light motor vehicles –non- transport includes cars, jeeps etc.

Various incentive and disincentive mechanisms have been included in
the policy to induce End-of-life vehicle owners to scrap older vehicles

Incentives

Scrap Value for the old vehicle given Registration fees to be waived off for
by the scrapping centre, approximately purchase of new vehicle against the
4-6% of ex-showroom price of a new certificate of deposit - draft notification
vehicle issued

Draft rules notified for state Auto OEMs have been advised to
governments to offer concession provide 5% discount on purchase of
on motor vehicle tax of new vehicle against the certificate of
• Up to 25% for non-transport vehicles deposit
• Up to 15% for transport vehicles

Disincentives

Increased fees for fitness test and Increased re-registration fees for private
issuance of fitness certificate for vehicles which are more than 15 years old
commercial vehicles which are more • Draft notification issued for higher
than 15 years old fees for fitness certificate, fitness test,
and re-registration
 Further, the policy outlines key steps for facilitating setting-up of
necessary support infrastructure in form of Automated Testing
Stations (ATSs) and Registered Vehicle Scrapping Facilities (RVSFs)

Automated Testing Stations (ATSs) Registered Vehicle Scrapping Facilities

to automate fitness testing (RVSFs) to promote safe scrapping of
vehicles and enhance value discovery

• Automated testing stations to be set up to • RVSFs will ensure that vehicles are
minimize manual testing of vehicles as per scrapped in an environmentally friendly
the road map and safe manner

• Vehicles failing automated fitness test to • RVSFs will also promote enhanced value
be defined as End-of-Life Vehicle (ELV) discovery through scientific scrapping
process
• In first phase, 75 stations proposed; to be
scaled to 450-500 stations across India • In India recovery percentage is only ~75%
compared to global benchmark of ~90%
• Private investment to be encouraged
through PPP route with partnership of • 50-70 RVSFs needed across the country in
state government the next 4-5 years
 Transparent operations of automated fitness testing stations form
the backbone for smooth implementation of VVMP

Integration with VAHAN database

Central Government

• Notify Rules including

tests to be conducted
as per CMVR, 1989 and NABL1 / 3rd Party
specifications of equipment audit agencies
and manpower
• Certify systems,
• Revision of re-registration
equipment & process
and fitness certification fee
• Certify integration with
Automated Testing central databases
Stations

State Government
• Automated testing
- no discretion &
• Promote Private Sector
manual intervention
investment
• Enforcing checks and
balances on automated 1 National Accreditation Board for Testing and
testing stations Calibration Laboratories
 Detailed guidelines have been published for setting up
Automated Testing Stations (ATS’)

Application process for grant of Eligibility criteria for grant of

registration certificate for an ATS registration certificate for an ATS
Application for Preliminary Registration Owner and/or operator may be State Govt,
certificate (for commencement of construction/ individual, company, association or body of
establishment) or grant / renewal of Certificate individuals or Special Purpose Vehicle (SPV)
of Registration to be made to the Registering (such as PPP)
Authority1, along with applicable fee
• Preliminary registration Fee: INR 10,000 ATS operator must have sufficient financial
resources & adequately qualified manpower to
• Registration Fee: INR 50,000
ensure continued operations of the station
• Security Deposit: INR 5,00,000
Registering Authority, may grant or renew the ATS to act as test-only facility and not provide
certificate within 60 days from the date of any services related to repair of vehicles or sale or
receipt of the application manufacturing of auto spares
• No application to be refused unless the
applicant is given an opportunity of being Strict confidentiality of information regarding
heard make and type of vehicle tested and results of
• Information regarding grounds for refusal of the tests to be maintained
the application to be uploaded on portal as
specified by the Central Government, within Cyber security certifications to be obtained for
3 working days of passing such order the IT Systems to safely access VAHAN database

Registration certificate issued to be valid for a

period of 10 years from the date of issuance and 5 Applicant must ensure infrastructure
years in case of renewal, as the case may be requirements are met

Included in CMVR 1989, inserted by G.S.R. 278 (E)

1. Transport Commissioner from State Govt from for the purpose of registering ATS
MoRTH has envisaged RVSFs to be technologically advanced,
transparent and environmentally safe in their operations

Technology Driven
Access to VAHAN database for easy de-registration process
De-registration of vehicles through integration of VAHAN with RTOs and RVSFs
Issuance of Certificate of Deposit (COD) and Certificate of Vehicle Scrapping

Access to NCRB1 & police database for verification of stolen vehicle or vehicle involved in criminal
activity, before scrapping a vehicle

Digital payments or account payee cheque to pay the agreed consideration for the end-of-life
vehicle (ELV) to the owner

Priority to Safe Operations

Specialized equipment for de-polluting, de-risking and dismantling End-of-life vehicles to minimize
human intervention and create a safe workplace

Designated space for removal/re-cycling or disposal of automotive hazardous waste such as tyres,
batteries, etc. as per Central Pollution Control Board (CPCB) Guidelines

Periodic Checks by Competent Agencies

Regular audits by the competent agencies specified under rule 126 of the Central Motor Vehicles
Rules, 1989

1 National Crime Records Bureau

 Clear and detailed guidelines have been published for setting up
Registered Vehicle Scrapping Facilities (RVSFs)

All RVSF applications will be processed Additionally, the applicant must seek/
through a central single window provide undertaking to seek necessary
clearance portal approvals from state authorities

Application for grant / renewal of Certificate Consent from state authorities to establish
of Registration for RVSF to be made to the and operate RVSF, approval for plant layout and
Registration Authority1 along with building plan
• Processing Fee: INR 1,00,000
• Security Deposit: INR 10,00,000 Quality certifications of ISO 90012/ ISO 140013/ISO
450014 within 12 months of starting operations
State/UT government will clear the proposal
within 60 days else the proposal would be Consent to operate from State Pollution Control
deemed approved Board (SPCB) within 6 months of starting
operations
The portal will be setup by Central government
and used for
Undertaking to abide by existing laws/Acts/
• Internal approvals from state agencies (Labor,
Rules/Standards etc.
Pollution etc.)
• Inspection and audit reports of RVSF
• Approval from any other department Evidence of cyber security certifications for
necessary to establish/operate RVSF secure connection to VAHAN database

Registration certificate issued to be valid for a

period of 10 years from the date of issuance or Evidence of certified depolluting and de-risking
renewal, as the case may be equipment

1. Transport Commissioner or any other Officer 3. Environmental certification

designated by the Government of the State/UT 4. Occupational health and safety
2. Quality management system
 Detailed criteria have been defined in RVSF rules for
scrapping of vehicles at RVSFs

Criteria for Scrapping of Vehicles at RVSF

• Vehicles which have not renewed their Certificate of Registration in accordance with Rule 52
of the CMVR, 1989.

• Vehicles which have not been granted a certificate of fitness in accordance with Section 62 of
the Motor Vehicles Act, 1988.

• Vehicles which have been damaged due to fire, riot, natural disaster, accident or any calamity,
following which the registered owner self certifies the same as scrap.

• Vehicles that have been declared obsolete or surplus or beyond economic repair by the
Central/State Organizations of the government and have been offered for scrapping.

• Vehicles bought in auction for scrapping the vehicles by any agency including RVSF.

• Vehicles which have outlived their utility or application particularly for projects in mining,
highways, power, farms, factories, airports, etc. as may be self-certified by the owner.

• Manufacturing rejects, test vehicles, prototype, vehicles damaged during transportation from
vehicle OEMs to dealers or unsold/unregistered vehicles, as may be certified by the Vehicle OEM.

• Auctioned, impounded and abandoned vehicles by any Enforcement Agency.

• Vehicles voluntarily offered to an RVSF for scrapping, at the discretion of the owner.
 Several draft notifications / standards have been issued to ensure ease
of doing business for investors and digitalized processes for ELV owners

Draft notifications / standards issued by MoRTH to address

investor concerns and incentivize ELV owners

# Draft Notifications / Standards

1 Mandatory scrapping of government vehicles older than 15 years

2 Registration and Functions of Vehicle Scrapping Facility Rules, 2021

3 Revision of registration, fitness certificate and fitness testing fee

4 Concession in motor vehicle tax for vehicles bought against certificate of

scrapping

5 Rules for recognition,

regulation and control of Automated Testing Stations

6 Automotive Industry Standard (AIS) 129 – Guidelines on provisions for end-of-life

vehicles