Vehicle Scrappage Policy

Vehicle Scrappage Policy 2021

Vehicle Scrappage Policy introduced in Lok Sabha

Vehicle Scrappage Policy
Two minute reads :

The Union Minister Nitin Gadkri on March 18, 2021 introduced the Vehicle Scrappage Policy in Lok Sabha.

The policy by the government aims at creating an eco- system to phase out the old, unfit and polluting vehicles.

According to a survey, it is noted that roughly 17 lakh medium and heavy commercial vehicles are older than 15 years without valid fitness certificates.

  • Vehicle Scrappage is a a government budget programme to promote the replacement of old vehicle with modern vehicles.

Benefits of Vehicle Scrappage Policy

  • It will lead to 25-30 % reduction in vehicular air pollutants and improves road safety.
  • Scrappage will boost vehicles sales in India
  • The policy will also improve fuel efficiency of vehicles, attract investment and increase GST for central and state government.

Policy points :

  • Vehicles owned by the government, panchayats and state transport undertakings will straight away go for scrapping after 15 years in service.
  • Private vehicle can ply on roads even after 20 years of first registration.
  • If a vehicle failed in fitness test, it will declared unfit to ply on roads and the vehicle will be de-registered.
  • Automobile companies have been asked to give 5% rebate on purchase of new vehicles against scrappage certificate.
  • State would give Concession in goods and services tax ( GST ) on purchase of new vehicle.
Reference : https://auto.economictimes.indiatimes.com/news/policy/the-rs-43000-crore-opportunity-buried-under-vehicle-scrappage-policy/74251208

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