Vehicle scrapping policy launched in India

Incredives

12 Aug 2021

The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme. Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible, tweeted PM Modi. The Vehicle scrapping policy was announced on the 2021 budget speech. The aim of this is to boost the automobile sector and reduce the vehicular pollution. As per the policy a private vehicle will be de-registered after 20 years if fails in fitness test and commercial vehicles will be de-registered after 15 years if it fails the fitness requirements. Also, the to discourage the owners to use the old vehicles the govt has increased the re-registration charges and will issue advisories to manufacturers to give 5% discount on new purchases after old vehicle has been scrapped on the basis of the certificate. It is a voluntary scrappage policy, but the higher fee for re-registration and application of green tax on old vehicles will make it more expensive to continue using an old vehicle. The owner using old vehicle which has failed the fitness test has to pay fines and vehicle can be confiscated too.