Be ready to dispose your 15YO vehicle: Telangana brings in new policy

Hyderabad: The Telangana Government has decided to implement a Vehicle Fleet Modernisation Policy in line with the recent amendments to the MV Act and similar to other States.

The move is aimed at providing incentives for encouraging a voluntary eco-system for phasing out end-of-life vehicles which are 15 years old or older and fail to pass fitness tests in the interest of road safety and a clean environment.

These amendments in the MV Act, 1988, have envisaged RVSFs and ATS to be technologically advanced, transparent and environmentally safe in their operations.

According to the transport department officials, the amendments in the Motor Vehicle Act of 1988 have introduced enabling provisions for the establishment of registered vehicles scrapping facilities (RVSFs) and (ATS) automated testing stations, as part of the Voluntary Vehicle Fleet Modernisation Programme (VVMP).

What is the Voluntary Vehicle Fleet Modernisation Programme?

VVMP is a step towards transforming and introducing a regime of fit vehicles to ply on the roads thereby increasing road safety. The policy is a perfect blend of incentives and concessions making the roads safe and promoting clean air.

The objectives of VVMP are a significant step towards modern mobility and an enhanced cleaner environment. The policy outlines key steps for facilitating the setting up of RVSFs and ATS.

What is the Registered Vehicle Scrapping Policy (RVSF)?

RVSF is to promote the safe scrapping of vehicles and enhance value discovery.

It will ensure that vehicles are scrapped in an environmentally friendly and safe manner and will also promote a scientific scrapping process. Transparent operation of Automated Fitness Testing Stations forms the backbone for the smooth implementation of VVMP. It will create a robust ecosystem for safe roads and a well-structured scrapping policy thereby increasing the overall road safety of all users.

VVMP is a multidimensional policy with a positive impact on the economy, generating employment and creating a clean environment. Through this policy, pollution will be reduced by voluntarily scrapping old and unfit vehicles. Improves road, passenger and vehicular safety improves fuel efficiency and reduces maintenance costs for vehicle owners. Scrapping of end-of-life vehicles will lead to a substantial reduction and emissions due to vehicular pollution.

For privately owned vehicles, through the voluntary vehicle scrapping policy, the State government is trying to promote the scrapping of end-of-life vehicles by offering incentives in the form of two types of concessions. The first one is MV Tax concession upon voluntarily scrapping the end-of-life vehicles and upon buying new vehicles of the same category, with the submission of a Certificate of Deposit.

The second type of concession is a one-time waiver of certain liabilities like a penalty on quarterly tax and green tax collectable on the vehicles which are turning up voluntarily for scrapping for the next two years from the date of this notification. To the extent of government vehicles, as mandated in Section 52A of the MV Act, they will be mandated to scrap through e-auction, in a phased manner, duly giving priority to the vehicles which are in use for the longest time.

Automated Testing Stations

The government has accorded administrative sanction for the construction of 37 Automated Testing Stations at a cost of Rs 8 crores each for a total amount of Rs 296 crores through the Roads & Buildings (R&B) Department providing the necessary budget and also permitting the construction of 15 Automated Testing Stations one for each erstwhile district headquarters with four additional ATS for Greater Hyderabad/HMDA Area in Phase – I with a cost of Rs 8 crores each totalling to Rs 120 crores through R&B Department.

The government has decided to stop the manual fitness testing at Regional Transport Offices (RTOs) in Districts where Automated Testing Stations (ATSs) under Rule 175 of Central Motor Vehicle Rules, 1989, are operational (issuance of Form 62 by the Transport Commissioner).

Incentives for voluntary scrapping of private vehicles

The government has decided through this policy to waive off the whole of the outstanding green tax collectable as per section 3-B of the TGMVT Act,1963 and the whole of the outstanding penalty payable on the quarterly tax under Rule 13 of the TGMVT Rules, 1963 for those vehicles which are more than 8 years from the date of registration, in case of transport vehicles, and more than 15 years from the date of registration.

In the case of non-transport vehicles; as an incentive to vehicle owners to scrap their old vehicles, subject to the condition, that such waiver shall be applicable to the motor vehicles in respect of which an application for scrapping has been made within two years from the date of issue of the notification to a Registered Vehicle Scrapping Facility (RVSF) registered under Rule 6 of Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

The government has decided to provide Motor Vehicles Tax concession for newly registered vehicles for various categories of non-transport vehicles and transport vehicles under Rule 51A of Central Motor Vehicles Rules, 1989, against submission of a certificate of deposit subject to the condition that the tax concession will be applicable for the same category of non-transport vehicles and transport vehicles respectively against submission of a certificate of deposit.

Scrapping of government vehicles

In pursuance of Rule 52 A of Central Motor Vehicle Rules, 1989, the Government has decided to scrap the Government vehicles belonging to State Government, Municipal Corporations, State Transport Undertakings, Public Sector Undertakings, Autonomous bodies owned or controlled by State Government which have completed more than 15 years of age from the date of registration duly following the extant guidelines and procedure for disposal of Government vehicles through e-auction in a phased manner duly giving priory for those vehicles which are in use for maximum number of years.

Waiver of penalty on quarterly tax and green tax

In exercise of the powers conferred under sub-section (1) of section 9 of the Telangana Motor Vehicle Taxation Act, 1963, the Governor of Telangana hereby waive off the whole of the outstanding green tax collectable as per Section 3-B of TGMVT Act, 1963 and the whole of outstanding penalty payable on the quarterly tax under Rule 13 of the TGMVT Act, 1963; for those vehicles which are more than 8 years from the date of registration, in case of transport vehicles, and more than 15 years from the date of registration.

In the case of non-transport vehicles, as an incentive to vehicle owners to scrap their old vehicles, subject to the condition, that such waiver shall be applicable to the motor vehicles in respect of which an application for scrapping has been made within two years from the date of issue of the notification to a RVSF registered under Rule 6 of Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

Motor Vehicles Tax concession

In pursuance of Rule 51A of Central Motor Vehicles Rules, 1989, as notified by the government of India Ministry of Road Transport and Highways and in exercise of the powers conferred by the Government under subsection (1) of section 9 of Telangana Motor Vehicle Taxation Act, 1963, the Governor of Telangana hereby grant the concessions for newly registered vehicles for various categories of non-transport vehicles and transport vehicles under Rule 51A of Central Motor Vehicles Rules, 1989, against submission of certificate of deposit subject to condition that the tax concession shall be applicable for the same category of non-transport vehicles and transport vehicles respectively against submission of certificate of deposit.

Implementation of Sarathi and Vahan

The government has decided to implement the Sarathi and Vahan software in the State within the maximum period of twelve months. In order to do that all necessary hardware and software upgrades will be taken up in all District RTA officers.