Vehicle scrappage policy details announced

Tuhin Guha Published: March 18, 2021, 02:34 PM IST

Nitin Gadkari, minister of road transport and highways, today laid down the details of the vehicle scrappage policy in the Lok Sabha. The policy was announced with the Union Budget 2021.

With the scrappage policy, private vehicles older than 20 years will undergo a fitness test. The same applies to commercial vehicles older than 15 years. The vehicles which don't meet the set standards will be termed as 'end-of-life'.

Vehicle Scrappage Policy – the complete picture – all you need to knowPresently vehicles are scrapped on our streets

The ministry has directed auto firms to offer a 5 per cent rebate on the purchase of a new car against a scrapping certificate. Further, states have the discretion to offer discounts on registration and road tax against a scrapped vehicle.

Gadkari said this scheme will be beneficial for all parties involved, boosting auto and ancillary industries, reducing air pollution and boosting tax collections. Automated fitness test centres will be set up in partnership with the private sector and these will issue the fitness certificate needed to imply the policy.

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