Tue. Feb 27th, 2024

Finance Minister Nirmala Sitharaman announced the general plan for the financial year 2022. budget In (Budget 2021) a voluntary vehicle scrapping policy has been announced for old vehicles. Under this policy, personal vehicles will have to undergo a fitness test after 20 years. Whereas, commercial vehicles will have to undergo a fitness test after 15 years. The fitness test of old vehicles will be done in automated centers. The Ministry of Road Transport and Highways will announce the final details of this policy. The vehicle scrappage policy is expected to create business opportunities of around Rs 43,000 crore. Also, this will increase consumption in the auto industry and it will also be beneficial for the environment. Auto stocks have gained momentum after the announcement of the scrappage policy.

Pollution and oil import bill will come down
Sitharaman highlighted the details of vehicle scrappage policies in her Union Budget 2021 presentation. “We are announcing a separate voluntary vehicle scrapping policy to weed out old and unfit vehicles. This will encourage fuel-efficient and environment-friendly vehicles. This will reduce pollution caused by vehicles and oil import bill.

India can become a big hub of automobile manufacturing
Road Transport and Highways Minister Nitin Gadkari had said that India could emerge as a major hub for automobile manufacturing once the vehicle scrappage policy is approved, as major raw materials such as steel, aluminum and plastic from scrapping are recycled. Can go This can reduce automobile prices by up to 20-30%.

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The Central Government had on 26 July 2019 proposed amendments to the Motor Vehicle Norms to allow scrapping of vehicles older than 15 years. Its aim is to increase the reach of electrical vehicles. Earlier, in May 2016, the government had come out with the Voluntary Vehicle Fleet Modernization Program (V-VMP) draft, which proposed to remove 2.8 crore old vehicles from the roads.

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