New Scrapping Policy For Old And Unfit Vehicles Declared In Budget 2021

The new policy in the budget 2021 comes in as a long-awaited relief to the automakers

• As per the new scrappage policy, old and unfit vehicles will be scraped. 

• The policy has been approved in the Union Budget 2021 and will be effective from 1st April 2022. 

• Fitness tests will be done for personal vehicles that have completed 20 years. 

• This will benefit automakers and increase their sales gradually. 

Finance Minister Nirmala Sitharaman today announced the voluntary vehicle scrapping policy in the Union Budget 2021. As per the policy, old and unfit vehicles will be phased out. This comes in as a big support to automakers, who will benefit from this policy. 

As per the new scrapping policy, vehicles which are old, unfit and polluting the environment will be phased out. The policy has been approved and will be effective from 1st April 2022. Exact details of the policy will be revealed soon by the Ministry of Road, Transport and Highways (MoRTH). 

The vehicle scrappage policy will benefit automakers and reduce air pollution at the same time. Vehicles would have to undergo fitness tests after completing 20 years for passenger vehicles (PV) and 15 years for commercial vehicles (CV). If their car is declared unfit or polluting, the owners will have to phase out their personal vehicles. People who are taking their old cars to the scrapyard will be further given some compensation to help them in buying a new car.  

As per the Federation Of Automobile Dealers Association (FADA), there are about 37 lakh commercial vehicles and 52 lakh private vehicles eligible for voluntary scrapping, taking 1990 as the base year. As an estimate, about 10% of CVs and 5% of PVs are still plying on the road. 

Also Read: Govt Approves New Green Tax On Older Vehicles: What Is It And What Are People Saying About it

Vehicle scrappage policy has been a long-awaited nod from the government. This policy is also expected to gradually reduce the prices of cars. More details are awaited, so stay tuned.