Know more details about Vehicle scrapping policy it will implemented soon

Union road transport and highways minister Nitin Gadkari on Thursday announced the much-awaited vehicle scrappage policy in Lok Sabha. The policy will likely to increase India’s automobile industry turnover to ₹10 lakh crore from the current ₹4.5 lakh crore and create as many as 50,000 jobs, Gadkari said.

The new policy will be a “win-win” policy that will help improve fuel efficiency and reduce pollution, the union minister further added. Finance minister Nirmala Sitharaman proposed vehicle scrappage policy during her Budget speech this year. Here is all you need to know about the vehicle scrappage policy

1) In case of failure to get a fitness certificate, commercial vehicles will be de-registered after 15 years. Private vehicles will be de-registered after 20 years if found unfit or in case of a failure to renew registration certificates, the minister said.

2) Under the new vehicle scrappage policy, owners of old vehicles will get strong incentives to scrap old and unfit vehicles. “We have issued an advisory to all vehicle manufacturers to offer 5% discount while selling a new vehicle against a scrapping certificate,” Gadkari said in Lok Sabha.

3) “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 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 union minister said.

4) The criteria for a vehicle to be scrapped is primarily based on the fitness of vehicles through Automated Fitness Centres (AFCs) in case of commercial vehicles and non-renewal of Registration in case of private vehicles. “The Ministry shall promote setting up of AFCs on a PPP model by state government, private sector, automobile companies etc.,” he mentioned.

5) All vehicles of the central government, state government, municipal corporations, Panchayats, State Transport Undertakings, Public Sector Undertakings (PSUs) and autonomous bodies with the Union and state governments may be de-registered and scrapped after 15 years from the date of registration.

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