[ 1 ]

GOVERNMENT OF PUDUCHERRY

TRANSPORT SECRETARIAT

(G.O. Ms. No. 01/Tr.Sectt./2024, Puducherry, dated 05th January 2024)

NOTIFICATION

Approval of the Lieutenant-Governor, Puducherry, is hereby

conveyed for the “Puducherry Motor Vehicle Scrapping Policy 2024”.

The details of the Policy are as appended to this notification.

(By order of the Lieutenant-Governor)

Dr. A.S. SIVAKUMAR,

Joint Secretary to Government

(Transport).

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LA GAZETTE DE L'ETAT

[PART–II

PUDUCHERRY MOTOR VEHICLE SCRAPPING POLICY – 2024

1. Introduction.— Automobile Scrappage Policy aims at creating

an ecosystem for phasing out unfit and polluting vehicles from the State/

Union Territory roads and to meet this objective state-of-the-art

scrapping and recycling units have to be established.

The Scrapping Policy will help in increasing Automobile sales,

provide employment, reduce import cost and generate incremental GST

revenue. The said Policy provides an important link in creating circular

economy (waste to wealth) for the Country.

The Union territory of Puducherry considers that Guidelines for

disposal of the vehicles should be formulated to offer an authorized place

to the registered owners of End of Life Vehicles (ELV), to get their

vehicles scrapped. Such scrapping Guidelines and scrapping Procedure

will help in ensuring that the vehicles, so scrapped, do not cause damage

to environment and there should be a proper disposal of hazardous

components of the scrapped vehicles.

In current global scenario, environmental pollution is considered

to be the most alarming issue causing climate change, threatening lives

of many species. The rising population of vehicles, especially the old

vehicles, plying on the roads is raising the pollution level. Unlike

developed countries, current setup for vehicle recycling in India is

extremely unorganized and majority of the vehicles are being routed

through the informal sector which does not follow any Legal/

Environmental or Ethical norms. The non-scientific manner of recycling

causes low material recovery, environmental damage by way of water/

air/soil pollution and unsafe working conditions for workers. Current

unorganized system also lacks the visibility and transparency in the

process for owners and the Government.

In this backdrop, the Ministry of Road Transport and Highways

(MoRTH) has recently launched the visionary Voluntary Vehicle-Fleet

Modernization Program(V-VMP). This programme is aimed at creating an

ecosystem for phasing out old unsafe, polluting vehicles and replacing

them with newer safe and fuel-efficient vehicles. The Ministry has also

notified the Registered Vehicle Scrapping Facility (RVSF) Rules vide

Notification No. GSR 653(E) dated 23-09-2021 to enable setting up of

modern vehicle scrapping facilities in India which can recycle the vehicles

PART–II]

LA GAZETTE DE L'ETAT

in an environment friendly manner. This rules lays down the procedure

for establishment of “Registered Vehicle Scrapping Facility” (RVSF) for

carrying out dismantling and scrapping operations of “End of Life”

vehicles, which is applicable to all vehicles and their last registered

owners, Automobile Collection Centers, Automobile Dismantling,

Scrapping and Recycling Facilities and recyclers of all types of

automotive waste products.

One compelling reason to bid farewell to aging vehicles is the

environmental impact. Older motor vehicles tend to have higher

emissions, contributing significantly to air pollution and climate change.

In the pursuit of a cleaner and greener future, there has never been a

more opportune moment to consider making switch to new vehicles by

scrapping the old ones. The automotive landscape is rapidly evolving,

with technological advancements paving the way for more eco-friendly

and efficient options. By embracing newer, more fuel-efficient models

or electric vehicles, the State can collectively reduce the carbon footprint

and play a pivotal role in preserving the planet for future.

Beyond environmental benefits, upgrading to modern vehicles

comes with a host of advantages. The latest automotive technologies

not only offer enhanced safety features, but, also deliver improved fuel

efficiency, reducing our dependency on fossil fuels. Embracing electric

or hybrid options can further contribute to the global effort to transition

towards sustainable energy source.

Moreover, scrapping old vehicles and transitioning to newer

models can stimulate economic growth. The automotive industry

continually invests in research and development, creating jobs and

fostering innovation. By supporting this shift, the State actively

contribute to the growth of industries dedicated to producing cleaner,

more sustainable transportation options.

A Government of Puducherry has recognized the importance of

this transition and is implementing various incentives to encourage

people to trade in their old vehicles. These incentives includes motor

vehicle tax concession, waiver of fee for registration of new vehicles

and other perks, etc.,

LA GAZETTE DE L'ETAT

[PART–II

2. Objectives and Vision.— As per Ministry of Road Transport

and Highways data, in India, 1.2 crore End of Life vehicles are estimated

to be without valid Registration Certificates and Fitness Certificates.

In the above background, the Union territory of Puducherry has

formulated the Puducherry Motor Vehicle Scrapping Policy - 2024 with

the following objectives:

(a) Reduce pollution by scrapping old and unfit vehicles.

(b) Improve road, passenger and vehicular safety.

(d) Improve fuel efficiency and reduce maintenance cost for

vehicle owners.

(e) Formalize the current informal vehicle scrappage industry

in the Union territory of Puducherry.

(f) Boost availability of low-cost raw materials for

Automotive, Steel and Electronic Industry.

(g) Promoting recycling of vehicle scrap in a scientific

manner.

(h) Promoting of circular economy in an eco-friendly manner.

(i) Encourage setting up of Registered Vehicle Scrapping

Facilities (RVSF).

3. Short title and application.— (a) These Guidelines shall be

applicable in the Union territory of Puducherry.

(b) They shall come into force with effect from the date of

01-04-2024 and will be valid for 5 years.

In the Guidelines, unless the context to otherwise requires

(i)

“Act” means, the Motor Vehicles Act, 1988 (59 of 1988).

(ii)

“Scrapping” means, the entire process from receipt and

record of the ‘End of Life Vehicles’ including

depolluting, dismantling, segregation of material, safe

disposal of non-reusable parts, and issuance of

Certificate of Vehicle Scrapping to the registered owner

of a motor vehicle;

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(iii)

“Registered Vehicles Scrapping Facility (RVSF)” mean,

any establishment which holds a Registration for

Vehicle Scrapping issued by the Transport Department,

Government of Puducherry under these Guidelines for

carrying out dismantling and scrapping operations.

(iv)

“Registration Authority” mean, the Transport Commissioner,

Government of Puducherry.

(v)

“Appellate Authority” mean, the Secretary to Government

(Transport,) Puducherry.

(vi)

“Enforcement Agency” mean, Police Department,

Industries Department, Municipal Corporations/

Commune Panchayat, Pollution Control Board,

Department of Revenue and Disaster Management, and

Transport Department, Government of Puducherry and

any other Government Departments or agencies

authorized by the Government of Puducherry.

(vii)

“ELV” means, ‘End of Life Vehicles’ which are no longer

validly registered or declared unfit through Automated

Fitness Centres or their registrations have been

cancelled under Chapter IV of the Act or due to an order

of a Court of Law or self- declared by the legitimate

registered owner as a waste vehicle due to any

circumstances as specified in MoRTH notification

No. GSR 653(E) dated 23-09-2021.

(viii)

“Certificate of Deposit” mean, the certificate issued by

the Registered Vehicle Scrapping Facility to recognize

the transfer of ownership of the vehicle from the

Registered Owner to the Registered Scrapper for further

treatment.

(ix)

“Certificate of Vehicle Scrapping” mean, the certificate

issued by a Registered Vehicle Scrapping Facility to

recognize the final disposal of a vehicle.

(x)

“Collection Centre” mean, a facility or an area that may

be used for the sole purpose of collecting and storing

the End of Life Vehicles and sending it for further

processing at the Scrapping Yard.

LA GAZETTE DE L'ETAT

[PART–II

(xi)

The vehicles registered in Puducherry shall be scrapped

only by an authorized RVSF.

4. General Conditions and Applicability.— (a) An RVSF may be

owned and operated by any legal entity, be it a Person, Firm, Society,

Company or Trust established in accordance with Law. An application

in prescribed Form-I shall be addressed to the Transport Commissioner,

Government of Puducherry. [Registering Authority of Registered Vehicle

Scrapping Facility (RVSF)].

(b) An application for RVSF shall be made online at

www.nsws.gov.in accompanied by required documents mentioned in

RVSF Rules, 2021 along with non refundable processing fee of ` 1,00,000

(Rupees one lakh only) and an earnest money deposit by way of a Bank

guarantee of ` 10,00,000 (Rupees ten lakhs), which shall be disposed

within a period of 60 (sixty days) from the date of application.

of 10 (ten) years, which shall be renewable for another 10 (ten) years at

a time.

(d) The Registered Vehicle Scrapping Facility established in the

Union territory of Puducherry may accept and scrap the Motor Vehicles

Registered in any of the State or Union Territory under the jurisdiction

of any Registration Authority.

(e) After handing over of the vehicles from owner or authorized

person to RVSF, the RVSF shall issue the “Certificate of Deposit” as

evidence of transfer of ownership of the vehicle. The Certificate of

Deposit, which shall be tradable, shall be a necessary and sufficient

document of the owner to avail incentives and benefits for purchase of

a new vehicle as may be declared from time to time.

(f) All the rules of the Motor Vehicles (Registration and

Functions of Vehicle Scrapping Facility) Rules, 2021 and other applicable

Rules and Regulations have to be complied with by the RVSF.

(g) Unless specified otherwise, the definitions in this Policy

shall be same as given in the Motor Vehicles (Registration and Functions

of Vehicle Scrapping Facility) Rules, 2021.

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(h) Any pending dues on the vehicle to be scrapped shall be

cleared before issuing Certificate of Deport by the RVSF.

(i) An undertaking from the owner or representative, indicating

that vehicle has no pending criminal record or litigation and there are

no pending dues on the vehicle shall be taken.

(j) Maintain safe custody of cut pieces of chassis number for a

period of six months from the date of issue of Certificate of Vehicle

Scrapping (CVS) and a physical copy of all documents for two years

and scanned copies for ten years for record and examination during

inspection.

5. Eligibility criteria for setting up of RVSF.— (a) They should

establish an office in Union territory of Puducherry.

(b) Necessary licences and permissions for the purpose of

setting up of RVSF in the Union territory of Puducherry shall be obtained

from Directorate of Industries, Trade and Commerce, Puducherry

pollution Control Committee, Department of Labour and other

Government agencies.

be it a person, Firm, Society, Company or Trust established in accordance

with Law having the following documents,-

(i) Certificate of Incorporation or the Shops and

Establishment Act Registration or Udyam Aadhaar;

(ii) Valid Goods and Services Tax Registration;

(iii) If, MSME and/or Startup, applicable MSME/Startup

documents as per the respective Acts/Scheme will be applicable.

(d) The applicant shall have applied for or having an approval

for consent to establish from the Registering Authority of the State in

which the Registered Vehicle Scrapping Facility is intended to be located.

(e) The applicant shall have a minimum turnover of INR 10 crores

if, he in a single applicant or combined in case of consortium/joint

venture partner.

(f) Upon issuance of the valid permit to operate RVSF, the

applicant shall undertake to meet the minimum technical requirement for

Collection and Dismantling Centers as per Central Pollution Control

Board Guidelines before beginning operations.

LA GAZETTE DE L'ETAT

[PART–II

(g) The applicant shall have competent manpower and

appropriate equipment to carry out the depollution and dismantling

activities in a safe and environmentally responsible manner.

(h) The applicant shall undertake to obtain the required quality

certifications of ISO 9001 (quality management system) or ISO 14001

(environmental certification) or ISO 45001 (occupational health and

safety) within twelve months of commencement of operations as a

Registered Vehicle Scrapping Facility and RVSF shall ensure that ISO

certifications are revalidated atleast 3 months before their expiry.

(i) The applicant shall possess or provide an undertaking to

obtain consent to operate from State Pollution Control Board within a

period of six months from commencement of operations.

(j) The applicant shall undertake to abide by the provisions of

all applicable Labour codes and all other Acts and Rules as applicable.

(k) The applicant shall provide evidence of availability of an

adequate useable area of land in the orange zone of the State/Union

Territory by way of ownership or agreement to sell or agreement for

lease of a minimum period of three years.

(1) The applicant shall provide approved plant layout and the

building plan.

6. Criteria for scrapping of vehicles.— The following vehicles

shall be scrapped at an RVSF-

(a) Vehicles which have not renewed their Certificate of

Registration (RC).

(b) Vehicles which have not been granted a Certificate of Fitness.

Government/PSUs/Government agencies/Autonomous Councils, etc.

(d) Vehicles which have been damaged due to fire, riot, natural

disaster, accident or any calamity, following which the registered owner

self-certifies the same as scrap.

(e) Vehicles which have been declared obsolete or surplus or

beyond economic repair by the Central or State Organizations of the

Government and have been offered for scrapping.

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(f) Vehicles bought by any agency including Registered Vehicle

Scrapping Facility in an auction for scrapping the vehicles.

(g) Vehicles which have out lived their utility or application

particularly for projects in mining, highways, power, farms etc., as may

be self-certified by the owner.

(h) Manufacturing rejects, test vehicles, prototype, vehicles

damaged during transportation from vehicle original equipment

manufacturer to dealers or unsold or unregistered vehicles as may be

certified by the vehicle original equipment manufacturer.

(i) Auctioned, impounded or abandoned vehicles by any

enforcement agency.

(j) Any other vehicle voluntarily offered to a Registered Vehicle

Scrapping Facility for scrapping by the owner

7. Strategy for effective implementation of Vehicle Scrapping

Policy in Puducherry.— For implementing this Scrappage Policy in an

effective way in the Union territory of Puducherry to reduce vehicular

pollution and to phase out unfit and polluting vehicles, thereby

promoting recycling of vehicle scrap in an eco-friendly manner, the

followings steps shall be adopted.

(a) The Government of Puducherry to promote the use of

Battery operated vehicles in the Union Territory has exempted the

Registration Fees, Motor Vehicle Tax and Permit.

(b) To encourage and incentivize people to voluntarily hand

over their vehicles to RVSF and in pursuance of MoRTH Notification

vide GSR 720(E), dated 5th October 2021, in case, a new vehicle is

registered against submission of "Certificate of Deposit", the concession

in the Motor Vehicle Tax shall be equivalent to 25% of the tax paid on

scrapping vehicles in case of non-transport vehicles and 15% in case

of transport vehicles in the Union territory of Puducherry. This

concession shall be available for a period of 5 years from the date of

implementation for both transport vehicles and non-transport vehicles.

agencies, if, found unfit to ply on road, may be disposed through RVSF

by following the prescribed procedures.

LA GAZETTE DE L'ETAT

[PART–II

(d) After Fitness testing is made mandatory for transport

vehicles in Automated Testing Station (ATS), this shall be made

compulsory for all categories of vehicles including Non-Transport

vehicles and its fitness testing after 15 years during the time of Renewal

of Certificate shall be done only at ATS. Those non-transport vehicles

not passing the Fitness test or not granted a Certificate of Fitness by

the ATS shall be handed over to the RVSF for scrapping.

8. Interpretation.— The decision of the State Government in

regards to interpretation of any clause of the Policy shall be final and

binding.

9. Tax Concession for End of Life Vehicle (ELV) owners.—

Sl.

Rule 51A of CMVR

Concession in MV Tax

No.

1989 Concession in

Motor Vehicle Tax

against submission

of “Certificate of

Deposit (CoD)”

(1)

(2)

(3)

Non-Transport Vehicle

The tax concession to be given for

newly registered two and three wheeled

vehicles against submission of CoD

issued by the RVSF shall be equivalent

to 25% of tax payable and concession

shall be equivalent to 25% of taxable

amount or ` 11,000 whichever is less

for four wheeler.

Note:

For the concession in tax for available,

the Certificate of Deposit of same class

of vehicle shall be submitted (e.g. For

two wheeler CoD submitted for two

wheeler, for four wheeler - four wheeler

of LMV, MMV & HMV as the case may

be or higher class of vehicle).

PART–II]

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Transport Vehicle

The tax concession to be given for

newly registered vehicles against

submission of CoD shall be equivalent

to 15% of tax paid for a period of

8 years from the date of registration of

the scrapping vehicles.

To encourage the scrapping of End-of

Life vehicles, the tax concessions shall

be given for all age of vehicles being

scrapped.

10. Waiver of Liabilities.— The Government of Puducherry will

consider the waiver of liabilities on vehicle proposed for scrapping after

taking inputs from all stake holding Departments’ Authority for such

waiver.

11. Rights of the Government.— (a) The Puducherry Government

reserves the right to amend any provision(s) including amendment or

withdraw any of the incentives/subsidies as and when necessary for

promotion of scrapping of unfit and end of life vehicles and in the

interest of the general people of the Union Territory from time to time

under the provision of the Policy.

(b) The Puducherry Government reserves the right to review the

matter regarding sanction/disbursement of subsidies/incentives and in

this connection, the State Government’s decision shall be final and

binding.

agency to study and recommend the number of RVSF viable for the state

and locations thereof.

(d) The State Government reserves the right to make/amend the

necessary rules for implementation of this Policy as and when required.

12. Rights to inspection.— In order to ensure compliance of these

Guidelines the authorized RVSF should keep office and scrapping yard,

records, register maintained by him and all the machineries, equipments,

operators in the premises at all the regional time, open for the inspection

by the Registration Authority or authorized representative of Transport

Department.

(1)

(2)

(3)

LA GAZETTE DE L'ETAT

[PART–II

13. Payment for Scrapping Vehicles.— The payments for the

scrapped vehicles to be made for the owners of ELVs as per the MoRTH

Notification No. GSR 653(E), dated 23-09-2021.

14. Applicable Acts and Rules.— Provisions of the following Acts/

Rules and Regulations/Guidelines/Amendments thereof are applicable.

(1) The Pondicherry Motor Vehicles Taxation Act, 1967.

(2) The Pondicherry Motor Vehicles Taxation Rules, 1967.

(3) The Motor Vehicles Act, 1988.

(4) The Central Motor Vehicles Rules, 1989.

(5) The Puducherry Motor Vehicles Rules, 1989.

15. Penalty.— In case of any violation of these Guidelines, the

Registration Authority may forfeit the security amount in part or full or/

and may also cancel the registration of any RVSF. However, an

opportunity of hearing will be given before forfeiture of security and

before issuance of cancellation orders.

16. Audits and Certifications.— (i) The Registered Vehicle

Scrapping Facility (RVSF) shall be audited by the Registration Authority

for compliance with Motor Vehicles (Registration and Functions of

Vehicle Scrapping Facility) Rules, 2021.

(ii) The Registration Authority may delegate the powers of

auditing.

(iii) RVSF may be audited by the Competent Authority or any

such agency on behalf of Competent Authority for regulatory and

compliance audit, audit of mass flow statement as maintained in Form-3

by the RVSF and all conditions stipulated by the Ministry of Road

Transport and Highways vide Notification No. GSR 653 (E), dated

23-09-2021 and GSR 192(E), dated 10-03-2022 and any conditions that

may be imposed from time to time.

(iv) Audit report shall be uploaded on the portal by the RVSF

annually by the 31st May of that Financial Year.

(v) An yearly report of ELVs scrapped shall be furnished in the

format prescribed by the Transport Department.

PART–II]

LA GAZETTE DE L'ETAT

online publication at “https://styandptg.py.gov.in”

Published by The Director, Government Press, Puducherry.

17. Appeal.— (i) Any person aggrieved by any order of the

Registration Authority for forfeiture of security or issuance of

cancellation orders, may within thirty days of the date of receipt of such

order prefer an appeal before the Appellate Authority within 30 (thirty)

days of issuance of penalty order.

(ii) The appeal shall be preferred in duplicate in the form of an

application, setting forth the grounds of objections to the order of the

Registration Authority and shall be accompanied by a certified copy of

the order appealed against and fee of ` 1,000 (Rupees one thousand

only).

18. Validity of the Policy.— This Policy and concessions shall be

valid for five years from the date of publication of notification in the

Official Gazette. The time-limit of the Policy shall be extended on

approval of Government of Puducherry.

19. Amendment of the Policy.— Any clause of this Policy shall

be amended within the Policy validity period after obtaining the approval

of the Government of Puducherry.

————