‘Vehicle scrappage policy will send truck owner-drivers out of business’, Auto News, ET Auto

Chennai: The auto scrappage policy declared by the Central govt on Thursday will make significant number of push-cum-operator truck operators go out of organization, say, sector gamers.

According to them, there are numerous vans which are about 15 several years of age but are plying shorter distances and for govt organisations and are owned by their motorists.

“The freight fees are not rewarding for them to scrap their outdated autos and go for new autos. The EMI (equated month-to-month instalment) for a new truck will be about Rs fifty,000 which will not be inexpensive by such operators,” M.R. Kumaraswamy, President, State Lorry Homeowners Federation-Tamil Nadu advised IANS.

Union Street Transportation and Highways Minister Nitin Gadkari on Thursday declared the auto scrappage policy in the Lok Sabha.

The policy proposes to de-register professional autos right after 15 several years in scenario of failure to get the conditioning certification. As a disincentive evaluate, enhanced expenses for conditioning certification and conditioning take a look at may possibly be relevant for professional autos 15 yr onwards from the date of initial registration.

The personal autos are proposed to be de-registered right after twenty several years if discovered unfit or in scenario of a failure to renew the registration certification. As a disincentive evaluate, enhanced re-registration expenses will be relevant for personal autos far too right after this period of time.

The govt also proposed that all autos of the Central govt, point out govt, Municipal Companies, Panchayats, State Transportation Undertakings, General public Sector Undertakings and autonomous bodies with the Union and State governments may possibly be de-registered and scrapped right after 15 several years from the date of registration.

In the next several weeks, draft notifications will be published and be in the general public area for a period of time of thirty times to solicit comments and views of all concerned stakeholders, Gadkari explained.

Kumaraswamy explained: “We had urged the govt that the scrappage policy must address autos that are aged twenty several years and above and cut down it gradually.”

He explained there are about six lakh vans in Tamil Nadu out of which about twenty five-thirty per cent will be 15 several years and above.

“Small operators will not able to go for a new BS-VI auto. They will also not get the enter credit score for Merchandise and Products and services Tax. The policy will gain only people who will acquire new autos,” S.K.Mittal, Govt President, All India Motor Transportation Congress advised IANS.

Mittal also claimed that the policy will further more increase the degree of corruption in the concern of conditioning certificates by the transport authorities.