5,500 Government Vehicles to be Scrapped from April 1 | 23 Jan 2023

Why in News?

On January 21, 2023, Uttarakhand Joint Transport Commissioner Sanat Kumar Singh informed that 5500 vehicles of government departments, corporations, bodies, transport corporations, departments, autonomous institutions in the state will become junk from April 01. The RC of these vehicles will not be renewed.

Key Points

• It is noteworthy that the central government has issued a notification of the Central Motor Vehicles (First Amendment) Rules 2023, which will come into effect from April 1, 2023.
• The government will have to spend 300 to 550 crores to buy new vehicles or rent vehicles instead of vehicles falling under its purview.
• Joint Transport Commissioner Sanat Kumar Singh said that in December, the Union Ministry of Road Transport and Highways issued a draft amendment to the Motor Vehicles Act under the scrap policy and sought suggestions from all the states.
• In the suggestion made by Uttarakhand, it was said that instead of 5500 vehicles going to junk, if they were auctioned, there would be a relatively small loss of Rs. 11 crore. Apart from this, Uttarakhand will need 550 crores to buy new vehicles at the rate of ten lakh per vehicle.
• After this, no government vehicle older than 15 years will be renewed in the state, but it will have to be given in scrap, for which three scrap centers are being set up in every district.
• The Joint Transport Commissioner said that under the new policy, vehicles older than 15 years will not be renewed from April 1. He will go to scrap. After the scrapping of 5500 vehicles, all the departments will have to buy new vehicles. Assuming the average price of a vehicle at Rs. 10 lakh, the state will need Rs. 550 crore.
• Sanat Kumar Singh said that under the scrap policy, from April 1, 2023, all types of heavy commercial vehicles will have to undergo a mandatory fitness test, while for private vehicles this system will be applicable from June 2024.