What is Vehicle Scrappage Policy India 2021: How Old Should Your Vehicle Be To Call It Scrap?

On February 1^st, the Finance Minister Nirmala Sitharaman announced the Union Budget 2021-22. During her speech, Sitharaman announced many things including a new policy, ‘Vehicle Scrapping’ policy. Under this policy, more than a crore old vehicles will be off the roads.

What is Vehicle Scrapping Policy

It is a voluntary scrapping policy where personal vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo fitness tests. The automated vehicle fitness testing centres will be set up all across the country.

Along with Finance Minister Nirmala Sitharaman announcement, Road Transport, Highways and MSMEs Minister Nitin Gadkari also spoke about the policy saying that it will help in scrapping old polluting vehicles. This is good for the environment.

Gadkari said that, "this policy will cover an estimated 51 lakh light motor vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs that are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and are currently running without valid fitness certificates.”

Benefits of the Policy

Speaking about the benefits of this policy, Gadkari said that this will lead to an investment of around Rs 10,000 crore and create around 50,000 jobs. More importantly, by scrapping the vehicles, we will be contributing towards a healthy environment as it will help in recycling of waste metal. Getting rid of old polluted vehicles will also improve the air quality.

Apart from that, getting rid of old vehicles will encourage the people to buy new and safer ones. The transport ministry also wants to encourage the purchase of electric vehicles.

Further details regarding the scrapping policy will be revealed later by the Road Transport and Highways Ministry. Gadkari said that more information will be shared in a few days.

In her speech for Union Budget, Finance Minister Sitharaman shared that "We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help in encouraging fuel efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill.”