Which of the following is true about the Voluntary Vehicle Fleet Modernisation Programme?
1. It promotes scrapping of old vehicles to reduce emissions.
2. The 'Ministry of Road Transport and Highways' is the nodal agency.
3. The scheme incentivizes buyers of fuel-efficient new vehicles only in urban areas.
Show answer & explanation
Correct answer: C
Explanation
Answer
The correct option is Only 1 and 2 are correct.
Explanation
The Voluntary Vehicle Fleet Modernisation Programme (VVFMP), popularly known as the Vehicle Scrappage Policy, was launched to create an ecosystem for phasing out unfit and polluting vehicles.
Statement 1 is True: The core objective is to reduce environmental pollution by removing older, inefficient vehicles that contribute significantly more to emissions than modern BS-VI compliant vehicles. It also promotes a "Circular Economy" by recycling materials like steel and plastic.
Statement 2 is True: The Ministry of Road Transport and Highways (MoRTH) is indeed the nodal agency responsible for the formulation and implementation of this policy.
Statement 3 is False: The incentives provided under the scheme (such as scrap value, tax rebates, and registration fee waivers) are not restricted to urban areas. The policy is national in scope, applicable across all regions of India to encourage a cleaner transport sector everywhere.
Additional Points for Exams
Vehicle Age Limits: Under this policy, commercial vehicles older than 15 years and passenger (private) vehicles older than 20 years must undergo a mandatory fitness test. If they fail, they are scrapped.
Incentives for Scrapping:
Scrap Value: Owners get a scrap value of approx. 4-6% of the ex-showroom price of a new vehicle.
Tax Rebate: State governments are advised to offer a road tax rebate (up to 25% for personal and 15% for commercial vehicles).
Discount: Auto manufacturers are encouraged to provide a 5% discount on new vehicle purchases against a "Scrappage Certificate
Potential Exam Questions & Answers
Q: Under the Vehicle Scrappage Policy, what happens if a personal vehicle older than 20 years fails the automated fitness test?
Answer: The vehicle’s registration cannot be renewed, and it is deemed "End of Life Vehicle" (ELV), making it illegal to ply on roads and mandatory for scrapping.
Q: What is the primary environmental standard that new vehicles must meet to be considered "modern" under current Indian norms?
Answer: Bharat Stage VI (BS-VI). The policy aims to replace older BS-II or BS-III vehicles with BS-VI compliant ones.