What is Vehicle Scrappage Policy 2021 in India, Will It Change The Indian Automobile Industry?

Vehicle Scrappage Policy 2021 India: Road Transport and Highways Minister Nitin Gadkari announced a vehicle scrap policy 2021 in the Lok Sabha. Nitin Gadkari said in the House that the Indian auto sector would get a boost under the scraping policy 2021. Along with this, the polluting vehicles will be removed from the roads. He further said that to encourage the scrapping of old vehicles, the government will give discounts and other benefits along with road tax exemption. The vehicle scrap policy was announced for the first time in the Union Budget 2021-22. However, it will be fully implemented from 2022 onwards. Know about the FASTag and how to get it.

What is Vehicle Scrappage Policy 2021 in India

What is Vehicle Scrappage Policy 2021?

According to the new Vehicle Scraping Policy 2021, if any commercial vehicle is more than 15 years old, then that vehicle registration will be cancelled. Similarly, for a personal vehicle, this limit is 20 years. You will not be able to drive the vehicle beyond the limits.

It will be mandatory to do a fitness test of all vehicles as soon as the vehicle registration limit is over. If the vehicle fails in the fitness test, it will be considered “End-of-Life”.  Instead of re-registering such vehicles, the government will encourage vehicle owners to scrape them. Vehicle Scrappage Policy 2021 is an amended version of Motor Vehicle ACT 2019. This will be implemented by 1st April 2022.

Benefit of New Vehicle Scrappage Policy 2021

There are many benefits to this new Vehicle Scrappage Policy 2021. It will give a boost to the automobile industry in the country. This policy may have the following advantages:

  • Automobile markets will gain momentum
  • It will help to control pollution
  • There will be a reduction in the rates of vehicles
  • New Vehicles will produce less pollution
  • The manufacturing sector will accelerate
  • A large number of jobs will be created in the automobile sector
  • This will greatly increase the production of steel.

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