The new policy is aimed at boosting the auto industry, which was facing a slump even before the pandemic
Vehicle owners and potential buyers will also be impacted by the policy
Finance Minister, during the Budget 2021 speech, made an announcement for a new voluntary vehicle scrapping policy. The new policy is aimed at boosting the auto industry, which has been facing a slump since even before the pandemic. On the other hand, vehicle owners and potential buyers will also be impacted by the policy.
Union Minister for MSME & Road Transport and Highways, Nitin Gadkari recently revealed some key aspects of the vehicle scrapping policy. Here are 10 key benefits of the policy, according to the Union Minister:
The new policy would lead to a 30% boost to the Indian automobile industry turnover to ₹10 lakh crore in the years to come.
Under the voluntary vehicle scrapping policy, personal vehicles would undergo fitness test after 20 years while commercial vehicles would require it after completion of 15 years.
Buyers of new vehicles after opting for scrapping of their old and polluting vehicles will be offered benefits under the new policy to phase out old and polluting vehicles
The minister said there are provisions of green taxes, other levies and such vehicles will have to undergo strict fitness tests in automated facilities.
Automated fitness tests will be set up under PPP mode while for scrapping centres also private partners and state governments will be assisted.
Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded.
The policy will give a boost to new technologies with better mileage of vehicles besides promoting green fuel and electricity and cut on India's huge ₹10 lakh crore crude import bills.
Gadkari had said the policy will lead to new investments of around ₹10,000 crore and create as many as 50,000 jobs
According to the minister, around one crore vehicles will go for scrap once the policy is set in action
He claimed that the finer details of the policy will be unveiled soon. Gadkari also claimed that the automobile industry will turn into one such sector that will offer maximum number of employments in the days to come