Narendra Modi launches Vehicle Scrappage Policy, here's what will change for old automobiles

The objectives of the policy are to reduce the population of old and defective vehicles, achieve a reduction in vehicular air pollutants to fulfill India’s climate commitments, improve road safety among others Prime Minister Narendra Modi launched the Vehicle Scrappage Policy on Friday calling it “a significant milestone in India’s development journey”. The objectives of the policy are to reduce the number of old and defective vehicles, achieve a reduction in vehicular air pollutants to fulfil India’s climate commitments, improve road and vehicular safety, achieve better fuel efficiency, formalize the currently informal vehicle scrapping industry and boost the availability of low-cost raw materials for automotive, steel and electronics industry. The tentative timeline for application of the Proposed Scrapping Policy is as follows: Rules for fitness tests and scrapping centres: 1 October 2021 Scrapping of government and PSU vehicles above 15 years of age: 1 April 2022 Mandatory fitness testing for heavy commercial vehicles: 1 April 2023 Mandatory fitness-testing : 1 June 2024 What’re the criteria for the scrapping of vehicles? The state governments may be advised to offer a road tax rebate of up to 25 personal for personal vehicles and up to 15 percent for commercial vehicles The vehicle manufacturers are also advised for providing a discount of 5 percent on purchase of new vehicle against the scrapping certificate In addition, the registration fees may also be waived for the purchase of new vehicle against the scrapping certificate With inputs from PTI