Odisha’s First Vehicle Scrapping Facility To Be Ready By March-End

Bhubaneswar: Odisha’s first scrapping unit in the Khurda district for discarding old and unfit vehicles is likely to become operational by the end of this month.

In the first phase, 642 government vehicles will go to the scrapping unit being set up by Empreo Premium at Khurda’s Pitapalli. It has nearly completed all the formalities and is likely to be issued a licence within a week to start its registered vehicle scrapping facility (RVSF), which will help regularise the informal and unorganised vehicle recycling industry in the state.

According to data available from the Commerce and Transport department, the state has 16,369 government-owned vehicles up to 15 years old, 300 vehicles older than 15 years and below 20 years and 263 vehicles older than 20 years.

In February, Transport Minister Tukuni Sahu told the Assembly that the government has decided to ban the vehicles having no fitness from March 15. Of 20,39,500 lakh outdated vehicles, 12,99,351 were motorcycles/scooters. Among others, 2.37 lakh moped, 1.25 lakh motor cars and cabs, 48,104 three wheelers, 1.54 lakh goods carriers, 12,369 buses, more than 50,000 tractors and 870 ambulances will also be scrapped.

The old vehicles will be discarded in phases after establishment of registered vehicle scrapping facilities (RVSFs) or units. Another applicant has acquired land and is developing its facility in Jajpur district, sources said.

According to the Odisha Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Policy, 2022, notified on November 30 last year, all vehicles under different departments, PSUs, organisations, autonomous councils and ULBs registered 15 years back are to be scrapped through a RVSF. Vehicle makers will be advised to provide a 5 percent discount on the new vehicle on the production of scrapping certificates issued by the government-approved vehicle scrapping units. “The scrap value for the old vehicles will be given by the scrapping centre approximately 6% of the ex-showroom price prevailing at the time of the scrapping. In case the vehicle is not being manufactured any more, the scrapped value will be decided via negotiation between the vehicle owner and the scrapping centre operator,” read the policy.

The government will provide 25 percent concession in the motor vehicle tax in case of non-transport vehicles and 15 percent concession in case of transport vehicles during registration of a new vehicle against the submission of certificate of deposit or scrapping certificate.

The policy also offers benefits to investors, who wish to set up RVSFs, which will be treated as industrial units.