Chennai: The motor vehicle scrappage coverage introduced by the Central governing administration on Thursday will make huge selection of drive-cum-owner truck operators go out of business enterprise, say, industry gamers.
In accordance to them, there are lots of vehicles which are above 15 yrs of age but are plying quick distances and for governing administration organisations and are owned by their drivers.
“The freight prices are not beneficial for them to scrap their previous cars and go for new cars. The EMI (equated every month instalment) for a new truck will be about Rs fifty,000 which will not be very affordable by these types of operators,” M.R. Kumaraswamy, President, State Lorry House owners Federation-Tamil Nadu advised IANS.
Union Street Transport and Highways Minister Nitin Gadkari on Thursday introduced the motor vehicle scrappage coverage in the Lok Sabha.
The coverage proposes to de-register professional cars soon after 15 yrs in case of failure to get the fitness certification. As a disincentive evaluate, enhanced costs for fitness certification and fitness check could be applicable for professional cars 15 yr onwards from the day of first registration.
The personal cars are proposed to be de-registered soon after 20 yrs if located unfit or in case of a failure to renew the registration certification. As a disincentive evaluate, enhanced re-registration costs will be applicable for personal cars far too soon after this interval.
The governing administration also proposed that all cars of the Central governing administration, condition governing administration, Municipal Businesses, Panchayats, State Transport Undertakings, Community Sector Undertakings and autonomous bodies with the Union and State governments could be de-registered and scrapped soon after 15 yrs from the day of registration.
In the upcoming couple of weeks, draft notifications will be posted and be in the public domain for a interval of 30 times to solicit comments and sights of all involved stakeholders, Gadkari said.
Kumaraswamy said: “We had urged the governing administration that the scrappage coverage should really protect cars that are aged 20 yrs and above and minimize it steadily.”
He said there are about six lakh vehicles in Tamil Nadu out of which about twenty five-30 for every cent will be 15 yrs and above.
“Tiny operators will not equipped to go for a new BS-VI motor vehicle. They will also not get the input credit score for Items and Services Tax. The coverage will benefit only these who will purchase new cars,” S.K.Mittal, Government President, All India Motor Transport Congress advised IANS.
Mittal also claimed that the coverage will even further enhance the amount of corruption in the situation of fitness certificates by the transportation authorities.