Today - August 13, 2021, Prime Minister Narendra Modi announced the vehicle scrappage policy or voluntary vehicle fleet modernisation. This day will be recognised as the landmark day of the Indian mobility sector as it has the potential to turn things around for automakers, component manufacturers, consumers, and most importantly, the environment.
At the Investor Summit in Gujarat, Modi said, the launch of the Vehicle Scrappage Policy today is a significant milestone in India’s development journey. I would request our youth & start-ups to join this programme.”
“Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner. Our aim is to create a viable circular economy and bring value for all stakeholders while being environmentally responsible,” he added.
Asserting the importance of the policy, Union Minister of Road Transport and Highways Nitin Gadkari said, scrapping old vehicles will cut the raw material cost by 40%. This will also lead India to become an automobile manufacturing hub.
The testing centres will be set up in all districts across the country using the public-private partnership (PPP) model, he added.
The Prime Minister said the new scrapping policy is an essential link in the circular economy and the waste to wealth campaign. This policy also reflects the government’s commitment to reduce pollution from the country’s cities and protect the environment and fast development.
By following the principle Reuse, Recycle and Recovery, this policy will also promote the country’s self-reliance in the auto and metal sectors.
It will bring in a fresh investment of more than INR 10,000 crore and create thousands of jobs.
What Vehicles Will Be Scrapped?
- Central and State Government vehicles aged over 15 years will be scrapped from April 2022.
- Commercial Vehicles with over 15 years from 2023.
- Passenger vehicles above 20 years from 2024.
- Vintage vehicles are currently exempted, and a separate policy will be formed to regulate them.
Benefits
- A certificate will be given on scrapping the old vehicle.
- A person possessing a certificate will not have to pay any money for registration on the purchase of a new vehicle and will also get some exemption in road tax.
- By doing this, the maintenance cost, repair cost, the fuel efficiency of the old vehicle will also be saved.
- The third benefit is directly related to life.
- Enhance road safety
- Reduce the harmful impact of pollution on peoples’ health.