No old car to scrap? Buying a scrappage certificate could still save money
Distilled Policy Brief
- Buyers without an old vehicle can purchase a Certificate of Deposit (CoD) from someone who has scrapped an eligible vehicle to claim benefits on a new car.
- The Ministry of Road Transport and Highways’ annual report notes that CoDs can be traded and used to avail of financial benefits through formal platforms like DigiELV integrated with the VAHAN system.
- Benefits linked to scrappage certificates include a waiver of registration fees, motor vehicle tax concessions, and discounts from vehicle manufacturers, though actual savings depend on state rules.
🎯 Prelims High-Yield Examination Points
What is a Certificate of Deposit (CoD) in the context of the vehicle scrappage policy, and through which official digital platform are these certificates traded?
⚖️ Mains Analytical & Syllabus Linkages
Examine the potential and challenges of the secondary market for vehicle scrappage Certificates of Deposit (CoDs) in promoting a circular economy and vehicular decarbonisation in India.
🎯 UPSC Prelims Practice Drill
Consider the following statements regarding the Certificate of Deposit (CoD) under India's vehicle scrappage policy: 1. A Certificate of Deposit can be obtained only by a person who simultaneously purchases a new vehicle. 2. According to the Ministry of Road Transport and Highways (MoRTH), CoDs are tradable and can be used by buyers to avail of financial benefits when purchasing a new vehicle. 3. The benefits accessed through CoDs mandatorily include uniform nationwide motor vehicle tax exemptions irrespective of state rules. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] 2 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is incorrect because buyers without an old vehicle can purchase a CoD from someone who has scrapped an eligible vehicle, allowing individuals who do not own an old car to access benefits. Statement 2 is correct as the MoRTH annual report notes that CoDs can be traded and used to avail of financial benefits. Statement 3 is incorrect because the benefits—such as motor vehicle tax concessions—depend on state-level rules, vehicle categories, and manufacturer offers rather than being uniform nationwide.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.