Tuesday 16 Apr 2024

No scrapyard for aging vehicles yet

Vibha Verma | APRIL 04, 2024, 12:55 AM IST

The implementation of Goa government’s Vehicle Scrappage Policy 2023 continues to face challenges as the setting up of scrapping yards for these outdated vehicles remains a distant dream. A highly placed ministry official stated that another six months would be required to set up the facility.

The situation persists even as the government’s new subsidy scheme for electric bikes offers additional benefits to owners who scrap their aged vehicles. With no scrapyard yet, the fate of the aging vehicles remains unknown.

The government data till last year revealed that 1.9 lakh vehicles, including 521 government vehicles, exceeded 15 years in age and were deemed suitable for scrapping.

However, due to the absence of a scrapping facility, many of these vehicles continue to operate on the roads. Initially, the government struggled to attract investors to establish the facility. Despite numerous inquiries, only one firm expressed interest prompting the government to extend the deadline from October 31, 2023, to December 31, 2023, for interested bidders.

It has now been revealed that the government is proceeding with the single investor – with no other agencies showing interest - who has assured them of coming up with the facility. However, the exact location remains undisclosed, and Transport Minister Mauvin Godinho was unavailable for comment to provide details on the matter.

Challenges of acquiring vast and expensive land and apprehending opposition from the locals -- who have been resistant to various government projects -- are some of the contributing factors that deterred bidders from taking part in the scrapping process.

“The number of government vehicles for scrapping, in comparison with other bigger states, may not be attractive for bidders seeking substantial returns...The policy is mandatory for the government vehicles whereas private vehicles might be allowed to operate, for a short period, depending on the inspection report by RTO officials and concerned agencies,” the source revealed.

He further said that while one firm may be sufficient for a smaller state like Goa, the government was keen on having more options.

As per the government records till last year, over the next five years, an additional 3.5 lakh vehicles registered in Goa will cross the age of 15 and a substantial number of these ELVs (end-of-life vehicles) will be from the commercial category.

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