It’s finally here! the Indian government has finally taken a huge step towards boosting its auto sales by initiating the first phase of the Vehicle Scrapping Policy.
The policy is finally being put to use after almost a year’s wait. In its first phase, the government has decided to offer a 5% rebate on the purchase of new cars. However, the only catch is, that you have to scrap your old vehicle under the Vehicle scrapping policy.
But before going into detail let’s start with something very basic!
What is the Vehicle Scrapping policy?
- To curb pollution and battle the slowdown in the automobile sector, the Government of India has proposed and funded a car scrapping policy.
- This policy aims at replacing old vehicles from Indian roads with new ones.
- Once a vehicle’s registration certificate expires beyond its operational limit, a user can go to any government-authorized scrapping centre and surrender the vehicle.
What are the benefits of the Vehicle Scrapping Policy in India?
- The first and foremost benefit is cleaner air. As inefficient vehicles will be taken off the roads, the air pollution levels will decrease.
- Vehicle scrapping will ensure the removal of old vehicles and an increase in sales of new vehicles in India.
- With the increased sale of new vehicles with advanced safety features, travelling on Indian roads will become a lot safer.
- The government is also setting up authorized vehicle scrapping facilities, this will in-turn generate huge employment opportunities in India.
- Vehicle scrapping will be a breakthrough for the raw and precious metal recycling industry in India.
Is there any additional information regarding the first phase of the new scrappage policy?
- According to Union Minister for Road Transport and Highways, Nitin Gadkari, the vehicle scrapping policy will also include automated fitness and pollution tests for private vehicles older than 20 years, and commercial vehicles older than 15 years.
- However, he also stated that any vehicle failing the fitness test set-up under the PPP (public-private partnership) will do nothing but attract huge penalties and impounding.
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