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Vehicle Scrappage Policy introduced in Lok Sabha
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.
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