Transport Minister Inaugurated the State's First Registered Vehicle Scrapping Centre

• 07 Oct 2023

Why In News?

On October 5, 2023, Chhattisgarh Transport Minister Mohammad Akbar inaugurated the state's first registered vehicle scrapping center in village Dhaneli under Raipur district.

Key Points:

• It is worth noting that it has been decided to compulsorily scrap all vehicles older than 15 years from the government department.
• During this, the transport minister said that the state government is working towards establishing Chhattisgarh as a vehicle scrapping hub for Central India, this center has been completely digitized to promote scrapping facilities.
• Under the Chhattisgarh Industrial Policy 2019-24, notification has been issued to keep the Registered Vehicle Scrapping Center (RVSF) in the category of high priority industries. RVSFs being set up in the state can also avail the benefits of relaxations prescribed for high priority industries.
• The state's first registered vehicle scrapping center will be operated by Metal Corporation of India.
• After getting the vehicle scrapped from a registered scrapping centre, the benefit of 25 percent tax exemption will be given for purchasing a new vehicle. For exemption, an online certificate will be issued by the registered scraping center, which will be called Certificate of Deposit.
• The Certificate of Deposit will be issued online, which will be displayed in the vehicle software of the Transport Department and will be valid in all the automobile dealerships across Chhattisgarh.
• Apart from this, those vehicles which pay monthly or quarterly tax and have outstanding tax and want to get scrapped will also be given exemption in the tax, penalty and interest of the last one year outstanding on the vehicle.
• Scrapping Process: When a vehicle reaches the scrap center, it is destroyed scientifically. Talking about the different stages, tires and engine kits are removed at the station. In the next step the batteries and free-on gas kits are destroyed. The vehicle's seats, steering, engine and radiator are then removed, leaving a hollow metal structure. Bale press machines are used to convert the metal into blocks, which are then supplied to various companies. Other components of the car are recycled and sold to private companies.