HomeMONEYGovt announces voluntary vehicle scrapping policy; to phase out old and unfit...

Govt announces voluntary vehicle scrapping policy; to phase out old and unfit vehicles

The long-awaited deregulation policy for the elimination of old cars and vehicles, which has been in operation since 2016, was announced on Monday by Union Finance Minister Nirmala Sitharaman at the Budget Union for the 2021-22 financial year.

Details of the policy will be announced within 15 days, Union Transport Minister Nitin Gadkari said on Monday.

A policy to remove old and unsafe vehicles to reduce pollution and traffic congestion has been submitted to the Cabinet Secretary’s office for submission to Cabinet for approval in February 2020.

“We are announcing separately the goal of the removal of vehicles to eliminate old and unfit vehicles. This will help to promote fuel-efficient, environmentally friendly vehicles, thereby reducing the import and export pollution. Vehicles will be tested at the gym after 20 years if there are cars, and after 15 years if there are cars for sale, ”Sitharaman said in his budget speech.

Gadkari said the policy would lead to a new investment of Rs 1 billion, and create up to 50,000 jobs.

The minister said the policy would cater for 5.1 million LMV vehicles over the age of 20, with an additional 3.4 million LMVs over 15 years of age. It will also deal with 1.7 million and medium-sized vehicles, over the age of 15, and currently without certification.

“This will improve the automotive industry. Skipping these vehicles will reduce the number of old and faulty vehicles, reduce by 25-30% in air pollution and improve road safety, ”he said.

Govt announces voluntary vehicle scrapping policy; to phase out old and unfit vehicles
Govt announces voluntary vehicle scrapping policy; to phase out old and unfit vehicles

“These vehicles are estimated to cause 10-12 times more pollution than the latest cars. It will lead to recycling, improved safety, reduced air pollution, reduced oil imports due to fuel efficiency in existing vehicles, and incentives for investment, ”he said.

In its revised vehicle policy, the department of road transport and highways said it would include the registration and reduction of tolls by car provinces by purchasing anti-passenger certificates in a friendly and scientific manner, HT reported earlier this month.

Key aspects of the draft policy include increasing renewal registration fees after the completion of 15 years; higher fees for issuance of a fitness certificate and motor vehicle testing over 15 years; international restrictions on access to older vehicles at city limits and higher road taxes on vehicles older than 15 years.

It also states that vehicle tightening will be performed at automotive training centers from the date of notification and deregistration of VAHAN vehicles for vehicles over 15 years (commercial) and 20 (private) vehicles found to be unsuitable by automated strength testing centers.

According to development officials, the delay was also due to the duplication of clauses raised in the same policies by other departments such as the Department of Finance to be removed in order for the policy to pass. The Department of Metals in 2019 announced the Governing Body Use Policy to provide a framework to assist and encourage the establishment of steel termination centers in India.

Working on a policy of vehicle extinction, the All India Motor Transport Congress, the top senders’ committee said in a statement, “For the first time in history the demolition policy related to the transport sector by the Government Budget has been announced. It’s just legalization, and it doesn’t go well with the organization. It is cohesive, compelling and will benefit the automotive and OEM industry. The final draft of the policy is not shared with stakeholders or interested parties or the public or comments and concerns invited. ”

“FADA is pleased to note that the Honorable Minister of Finance has finally announced the much-anticipated Scrappage Policy, despite its determination to eliminate old vehicles. If we take 1990 as the base year, there are about 37L commercial vehicles and 52Lakh private cars that are eligible for voluntary release. As an estimate, 10% of CV and 5% of PV are likely to still be on the road. We still need to see better documentation of the type of benefits that will be available and have a positive impact on stores, ”said Vinkesh Gulati, Federation of Automobile Dealers Associations (FADA).

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