Nirmala Sitharaman, India’s Finance Minister has officially announced a voluntary vehicle scrapping policy to phase out and unfit vehicles. In her presentation of the Union Budget 2021, She said that the new policy will help encourage fuel efficient and environment friendly vehicles. This will help in reducing vehicular pollution and oil import bills.
According to the separate vehicle scrappage policy, if a vehicle fails to pass the fitness test more than thrice than it might be subjected to mandatory scrapping. The company is yet to announce on introducing vehicle scrapping facilities. More details about the final scrappage policy is yet to be announced.
Nitin Gadkari, Minister for Road Transport & Highways and the Minister of Micro, Small and Medium Enterprises in the Government of India, has already sent a Scrappage Policy proposal to the Government. This policy announced soon after Government’s announcement of a scrappage policy for vehicle used by Government and PSUs. Gadkari has already approved the vehicle scrappage policy for vehicles owned by Government and PSU. The new policy will be effective from April 1, 2022.
20 Years Older Cars To Pass Fitness Test
The new scrappage policy will be based on fitness tests. The life for the private vehicles has been set at 20 years, while the life for the commercial vehicles is set at 15 years. More details will be released soon.
Government believes that the new policy will help in increasing new vehicle sales. In fact, auto manufacturers such as Maruti Suzuki and Tata Motors are exploring vehicle scrappage options. The brands are aiming to create a separate industry, which will also help in generating employment opportunities.
