Home / Budget / News /  Details of voluntary scrappage policy to be declared within 15 days: Gadkari

Union Minister for MSME and Road Transport & Highways, Nitin Gadkari on Monday has welcomed the voluntary scrappage policy announced in the Union Budget, and said that declaration of the details of the policy will be done within next 15 days.

In his post-Budget interaction with the media, Gadkari said that the scrappage policy will lead to new investment of around 10,000 crore, and create as many as 50,000 jobs.

The policy is about phasing out of old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.

"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," said Finance Minister Nirmala Sitharaman in the Parliament while presenting the Union Budget 2021-22.

"Vehicle should undergo a fitness test in automated fitness centres after 20 years in case of personal vehicles and after 15 years in case of commercial vehicles," she added.

The Minister said the policy would cover an estimated 51 lakh light motor vehicles (LMV) that are above 20 years of age, while another 34 lakh LMVs are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates. These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles. Outlining the benefits of the policy, Gadkari said it would lead to recycling of waste metal, improved safety, reduction in air pollution, reduction in oil imports due to greater fuel efficiency of current vehicles, and stimulate investment.

Gadkari also welcomed the increased outlay for the highways sector, to Rs. 1,18,000 crores, with the highest-ever capital investment of 1,08,000 crores. While welcoming the increased allocation, the Minister said that the Ministry’s increased stress on monetization of highways will help in expanding the road network in the country.

Sitharaman on Monday announced the highway infrastructure plan for four poll-bound states -- Tamil Nadu, West Bengal, Kerala and Assam.

Presenting the Union Budget 2021-22, Sitharaman gave a breakout of the highway projects in the four states. "Tamil Nadu will get 1.03 lakh crore for building of 3,500 km of roads, Kerala will get 65,000 crores for 1,500 km of roads and West Bengal will get 95,000 crores for 675 km road. In Assam, 1,300 km roads will be constructed at a cost of 3,400 crore," she said.

"Over 13,000 km length of roads at a cost of 3.3 lakh crores has already been awarded under 5.35 lakh crore Bharatmala project of which 3,800 kms have been constructed. By March 2022 we would be awarding another 8,500 kms and complete an additional 11,000 kms of National Highway Corridor," she added.

Sitharaman announced that National Monetisation Pipeline for brownfield projects will be launched.

She further said that five operational road projects with an estimated enterprise value of 5,000 crore is being transferred to the National Highways Authority of India (NHAI). Transmission assets worth 7,000 crore will be transferred to Power Grid Corporation of India Limited, she added.

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