Vehicle Scrappage Policy: Union Minister for Roads, Transport and Highways Nitin Gadkari has announced a new vehicle scrap policy in the Lok Sabha on Thursday 18 March. Under the policy, those who buy a new car can get a significant discount. Gadkari said that by issuing an advisory, we have advised all the automakers to give a discount of 5 percent on the purchase of a new vehicle on showing a scraping certificate. He said that the vehicle scraping policy is a win win policy, which will not only reduce pollution rapidly but will also give a boost to the auto sector.
New vehicle purchase discount
Under the new policy, a discount has been offered to bring more and more old cars under the ambit. The policy states that 5 percent incentive can be given to customers on showing scrap certificate. Advisory has been issued to the auto companies to give 5 percent discount to those who buy a new vehicle after seeing the scraping certificate. The Union Minister said that those who buy new vehicles by scraping old vehicles can also be given registration and tax exemption from the State Governments.
Special features of the policy
- After the registration of the vehicle is over, he will inevitably have to take him to the fitness center.
- This limit is 20 years for private vehicles and 15 years for commercial vehicles.
- If the vehicle fails the fitness test, then its life will be considered over.
- The vehicle owner will be encouraged to scrap the jagi to get the registration renewed.
- Fees will be charged more for registration renewal, so that people can be encouraged to buy new vehicles instead of old ones.
- Automated fitness centers will be built across the country to make scraping policy easier.
- The parts emanating from whatever vehicles will be scraped will be recycled, which will also reduce the cost of components.
Suggestions from the government
- The scrap value will be between 4-6 per cent, which will be given to the vehicle owner for scrap.
- Under this policy, the government has suggested to give 25 percent exemption on road tax.
- Auto makers have been asked to give 5 per cent of the boot on purchasing a new car after seeing a scrap certificate.
The auto industry also benefits
The Union Minister said that not only the vehicle owners but also the auto industry will benefit from the new vehicle scraping policy. People will buy new cars. The cell of the auto industry will grow. With this, his turnover is estimated to increase from 4.5 lakh crores to 10 lakh crores.
India will become a manufacturing hub in 5 years
In the Lok Sabha, Nitin Gadkari said that with this policy, India will become the biggest hub of automobile manufacturing in the next five years. He said that 100% lithium ion battery will be made in the next 1 year. In the next 2 years, the price of electric 2W / 4W will be equal to petrol-version 2W / 4W.