RNS: The central government announced the long-awaited vehicle scrappage policy on Thursday.
Announced by Finance Minister Nirmala Sitharaman in her budget speech this vehicle scrapping policy is an attempt to give a boost to the automobile manufacturing sector and lower carbon emissions.
The rules for fitness tests and scrapping centres are likely to be notified by October 1 of this year.
The government has also fixed the deadline to scrap vehicles above 15 years of age which are used by the government departments as well as PSUs from 1st April 2022. For heavy commercial vehicles, the mandatory fitness testing will commence from 1st April 2023. Similarly, mandatory fitness testing will be carried out in a phased manner for other categories of vehicles from 1st June 2024.
As per the new policy, commercial vehicles will be de-registered after 15 years in case of failure to get a fitness certificate, while private vehicles will be de-registered after 20 years if found unfit or in case of a failure to renew registration certificates, said Union transport minister Nitin Gadkari.
“It will reduce pollution and increase road safety,” said Union transport minister Nitin Gadkari.
This is a significant step towards improving the Indian automotive market. Once this strategy had been adopted, India would become the world’s biggest motor hub in the next five years, Gadkari claimed in the Parliament.
Over 3.7 crore job opportunities will be created in the country with the implementation of the Vehicle Scrapping Policy. While additional GST revenue of 30 to 40 thousand crore rupees will be generated through this move, said Gadkari.
Around 10 thousand crore rupees worth of investment will be attracted through this policy. It will bring transformational changes in the automobile sector by reducing vehicular emission of pollutants.
India will become the global leader in the automobile sector in the next five years and the country will be able to indigenously produce 100 per cent lithium-ion batteries in the next one year, he said.
