The vehicle scrappage policy was announced during the 2021 Union Budget by Finance Minister Nirmala Sitharaman. The Union Ministry Nitin Gadkari has always emphasised that the scrappage policy will be a game-changer for the Indian automotive industry. According to a report from PTI, the transport minister now said that owners who scrap their old vehicles will receive a rebate of about five per cent from the manufacturer while purchasing a new vehicle under the scrappage policy. The minister had previously stated that owners scrapping their old vehicles will get some benefits from the manufacturers.
Nitin Gadkari said that buyers of new vehicles opting to scrap their old cars will receive rebate of 5 per cent from manufacturer.
Nitin Gadkari, Road Transport, Highways and MSMEs Minister Gadkari told PTI, "Automobile manufacturers will provide about 5 per cent rebate on new car purchases" to the consumers in lieu of scrapping of the old. There are four major components of the policy...Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout in the country and we are working in that direction."
As per the new scrappage policy, personal vehicles will have to undergo a fitness test after completion of 20 years whereas commercial vehicles will be required to carry out fitness test after 15 years.
(With inputs from agencies)