Arteev Sharma
Jammu: The Union Territory (UT) of Ladakh has come out with the vehicle scrappage and recycling incentive policy, aimed at the scrapping end of life vehicles (ELVs), the retirement of unfit and polluting vehicles to prioritize environmental sustainability and promote eco-friendly practices.
Popularly known as the “Vehicle Scrapping Policy,” the initiative that has been put in the public domain for seeking suggestions and objections focuses on reducing vehicular pollution, improving road safety, and promoting eco-friendly recycling practices. By retiring outdated and unfit vehicles, Ladakh seeks to address the environmental damage caused by aging, high-emission vehicles.
The policy mandates scrapping vehicles that lack valid registration or fitness certificates, government-owned vehicles older than 15 years (including those under PSUs and autonomous councils), and vehicles damaged by accidents or natural disasters. It aligns with the Ministry of Road Transport and Highways’ Voluntary Vehicle-Fleet Modernization Program (V-VMP).
According to the official statistics, there are over three lakhs registered motor vehicles in Ladakh Union Territory, out of which over 10,000 ‘end of life vehicles’ are running on the roads in the arid region. The ‘end of life’ vehicles include 7,183 vehicles without valid fitness, 2,750 non-transport vehicle without valid registration and 391 vehicles having cancelled registration certificates.
“Retiring aging vehicles is crucial for mitigating environmental harm. Older vehicles emit harmful pollutants, exacerbating air pollution and climate change. As the automotive industry evolves, embracing eco-friendly technologies, now is the ideal time to upgrade to newer, fuel-efficient, or electric vehicles. By doing so, we can collectively reduce our carbon footprint and contribute to a sustainable future,” the draft policy stated.
The policy outlined major objectives include reduction in pollution by scrapping old and unfit vehicles, improving road, passenger and vehicular safety, boosting auto sector and generate employment, improving fuel efficiency and reduce maintenance cost for vehicle owners, formalizing the current informal vehicle scrappage industry in the Union territory of Ladakh, boosting availability of low-cost raw materials for Automotive, Steel and Electronic Industry, promoting recycling of vehicle scrap in a scientific manner, promoting of circular economy in an eco-friendly manner and encouraging setting up of Registered Vehicle Scrapping Facilities (RVSF).
The incentives include tax concessions wherein vehicle owners submitting a Certificate of Deposit (CoD) from an RVSF will receive a 25 percent concession in Motor Vehicle Tax for non-transport vehicles and 15 percent for transport vehicles and waiver of liabilities.
“The administration may waive off liabilities for vehicles approved for scrapping, subject to departmental inputs,” it said, adding “the Fitness testing at Automated Testing Stations (ATS) will become mandatory for all vehicle categories, with non-compliant vehicles directed for scrapping”.
The policy will ensure the establishment of state-of-the-art RVSFs, which will handle the dismantling, de-pollution, and recycling of vehicles in compliance with environmental standards. “To streamline the process, applications for setting up RVSFs will be managed online, accompanied by a non-refundable processing fee and earnest money deposit and RVSFs will be open to vehicles registered within and outside Ladakh,” the draft said.
This policy will remain valid for five years from its notification in the Official Gazette, with provisions for extension upon administrative approval.
