The new Vehicle Scrappage Policy was first announced during the presentation for the Union Budget for 2021. Till now, India did not have a standard procedure for disposing of old vehicles. With this policy, India will have a structured approach on scrapping vehicles, keeping in mind benefits for both, the people and the environment. Here are the most googled questions about the Vehicle Scrappage Policy of 2021.

  1. What is the new Vehicle Scrappage Policy?

According to this policy, passenger vehicles older than 20 years and commercial vehicles older than 15 years will have to be scrapped mandatorily. This is only if these vehicles don’t pass a series of tests on emissions and vehicle fitness. Owners will have to get their vehicles tested periodically to ascertaining that their vehicles are fit to run.

  1. What are the benefits of this policy?

Owners who will voluntarily scrap their vehicles will get a 15-25% rebate on road tax and a complete waiver on the registration fees on their next car. Automakers will also have to offer a waiver of 5% for a certified scrapped vehicle. Apart from this, owners will also get a price for their scrapped vehicles. This price will be roughly 4-6% of the cost of the new car.

  1. When will the scrappage policy be implemented?

The policy was recently announced by PM Narendra Modi. The tentative date for implementation is 1st October 2021 for private vehicles. The scrapping of government and PSU vehicles which are over 15 years old will start in April 2022.

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  1. What will happen if I don’t scrap my vehicle?

Vehicles that have completed their designated life and are deemed unfit to run have to be scrapped. If such a vehicle is found, it will attract heavy fines and may also be impounded.

  1. What is a fitness test?

A vehicle fitness test will be done much like the PUC Test. However, it will be much more detailed. Apart from emissions, vehicles will also be checked on their overall quality. Wear and tear parts like the engine, brakes and other aspects will also be tested. This testing will take place at automated test centers provided by the government.

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