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PM Modi introduces Vehicle Scrappage Policy: Here’s everything to know about it!

Kushal Raut by Kushal Raut
August 19, 2021
Reading Time: 3 mins read
1
Vehicle Scrappage Policy

PM Modi introduces Vehicle Scrappage Policy: Here’s everything to know about it!

Vehicle Scrappage Policy: In his launch speech, Prime Minister Narendra Modi said the government would scrap unfit and polluting vehicles. Approximately Rs 10,000 crore will be invested in this policy, he said. An investor summit in Gujarat was the venue for Modi’s remarks. During the summit, investments relating to scrapping vehicle infrastructure will be sought.

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PM Modi said scrapping old, polluting vehicles could be done in an environmentally friendly manner. As well as being scrapped by their age, he explained, vehicles will also be discarded if they fail a mechanical test.

Vehicle Scrappage Policy

Our middle class will benefit greatly from this policy, he said. Scrapping an old car will result in the issuance of a certificate. In addition to receiving discounts on buying new cars, these people will also be able to save on taxes, he stated.

About Vehicle Scrappage Policy 

The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme.

— Narendra Modi (@narendramodi) August 13, 2021

The circular economy is something we are promoting. PM Modi said his goal is to create a sustainable economy that is environmentally friendly.

Approximately Rs 10,000 crore will be invested in this policy, he said.

An investor summit in Gujarat was the venue for Modi’s remarks. During the summit, investments relating to scrapping vehicle infrastructure will be sought.

What is Vehicle Scrappage Policy

It is designed to create an environment for safely getting rid of unfit and polluting vehicles in an environmentally friendly and safe way through vehicle scrapping. As part of the policy, Automated Testing Stations and Registered Vehicle Scrapping Facilities will be constructed throughout the country to facilitate scraping.

Check out: CoinDCX raises $6.7 billion in funding to become India’s first crypto unicorn

A statement by Prime Minister’s Office (PMO) says the Investors Summit is being organized to attract investments in the purchase of scrapping infrastructure as part of the Voluntary Vehicle Fleet Modernization Program or Vehicle Scrapping Policy. Organized by the Gujarat government and the Ministry of Road Transport and Highways, the Summit will take place in Ahmedabad on 11-13 March.

India has about 17% of the world’s medium and heavy commercial vehicles, as per the Ministry of Road Transport and Highways. Additionally, the report mentioned that the industry believes that the new policy may generate new vehicle demand.

The Union Minister for road transport Nitin Gadkari recently announced 30 percent rebates for those who buy a new vehicle after giving a scrapping certificate.

Vehicle must be tested for fitness

Vehicle Scrappage Policy

As announced in the Union Budget 2021-22, personal vehicles are expected to undergo a fitness test after 20 years, whereas commercial vehicles would be required to do so after 15 years. End-of-Life Vehicles are used when a vehicle does not meet its fitness requirements or fails to renew its registration certificate. De-registration of 15-year-old commercial vehicles.

When a commercial vehicle has not obtained a fitness certificate after 15 years, it will be deregistered.

To discourage consumers from buying commercial vehicles that are at least 15 years old to the date of the first registration, the minister may increase fitness certificate and fitness test fees.

The rule for 20-year-old private vehicles

In addition, if a private vehicle is deemed unfit or its registration certificate is not renewed after 20 years, its registration could be revoked. For private vehicles registered 15 years or more after the initial registration, the re-registration fees will be increased as a disincentive.

An economy based on circularity is being promoted by us. Developing an economy that is both sustainable and environmentally friendly is PM Modi’s goal.

In addition to reducing travel and transportation costs, modern mobility is also beneficial for economic development, according to him.

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