Vehicle scrapping policy: 10 points car owners and buyers should know
The new policy is aimed at boosting the auto industry, which was facing a slump even before the pandemic Vehicle owners and potential buyers will also be impacted by the policy
Finance Minister, during the Budget 2021 speech, announced a new voluntary vehicle scrapping policy. The new policy is aimed at boosting the auto industry, which has been facing a slump since even before the pandemic. On the other hand, vehicle owners and potential buyers will also be impacted by the policy.
Union Minister for MSME & Road Transport and Highways, Nitin Gadkari recently revealed some key aspects of the vehicle scrapping policy. Here are 10 key benefits of the policy, according to the Union Minister:
- The new policy would lead to a 30% boost to the Indian automobile industry turnover to ₹10 lakh crore in the years to come.
- Under the voluntary vehicle scrapping policy, personal vehicles would undergo a fitness test after 20 years while commercial vehicles would require it after completion of 15 years.
- Buyers of new vehicles after opting for the scrapping of their old and polluting vehicles will be offered benefits under the new policy to phase out old and polluting vehicles
- The minister said there are provisions of green taxes, other levies and such vehicles will have to undergo strict fitness tests in automated facilities.
- Automated fitness tests will be set up under PPP mode while for scrapping centres also private partners and state governments will be assisted.
- Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded.
- The policy will give a boost to new technologies with better mileage of vehicles besides promoting green fuel and electricity and cut on India's huge ₹10 lakh crore crude import bills.
- Gadkari had said the policy will lead to new investments of around ₹10,000 crores and create as many as 50,000 jobs
- According to the minister, around one crore vehicles will go for scrap once the policy is set in action
- He claimed that the finer details of the policy will be unveiled soon. Gadkari also claimed that the automobile industry will turn into one such sector that will offer a maximum number of employments in the days to come