Voluntary Vehicle Scrappage Policy: Finance Minister has announced to launch Voluntary Vehicle Scrapping Policy.
Voluntary Vehicle Scrappage Policy: Finance Minister Nirmala Sitharaman has made a big announcement regarding the auto sector in the budget. The Finance Minister has announced to launch a voluntary vehicle scrapping policy. Under this, 20 years old private vehicles and 15 year old commercial vehicles will not be able to land on the roads. It is believed that this announcement of the budget will prove to give a boost to the auto sector. The Finance Minister has said in his budget language that this will be a stratting policy voluntary, which will be run phase-wise. Full details about this are yet to be given.
Demand for new vehicles will increase
With the introduction of scraping policy for old vehicles, now unfit vehicles will not be able to hit the streets. This will give strength to the country’s economy facing decline. Actually, the demand for new vehicles will increase with this policy. Which will give a boost to the automobile sector. Customers will get new vehicles up to 30 percent cheaper. Older vehicles will reduce air pollution by 25 percent. At the same time, large scale employment will also be available at scrap centers.
Effective from 1 April 2022
The government had proposed an amendment in the Motor Vehicle Act in July 2019 to approve scraping of vehicles older than 15 years. Now this scrap policy will come into effect from 1 April 2022. The purpose of this step of the government is to remove polluting vehicles from the road, for this, the owners of Bharat Stage -VI standard will also be provided incentives.
The scraping policy was under consideration for about 5 years. It was stuck at various levels due to concerns over the revenue loss of the government. According to government statistics, commercial vehicles, which constitute about 5 percent of the total vehicle, contribute about 65-70 percent of the total vehicle pollution. These older vehicles cause 10-25 times more pollution than modern vehicles.