Union Budget 2021-22 focuses on vehicle scrappage: What does it mean
Finance minister Nirmala Sitharaman announced the much-anticipated vehicle-scrappage policy in her budget speech. Nitin Gadkari, Union Minister for Road, Transport and Highways, later added that the policy would be notified within 15 days. 15-year-old commercial vehicles & 20-year-old personal vehicles will be eligible. The policy is expected to reduce urban pollution as well as boost car sales, which took a hit during COVID-19. The policy is voluntary. But vehicles that cross the age limit must undergo a mandatory fitness test. Fitness tests will be conducted at automated centres, Sitharaman said. Each test will be valid for 5 years and cost ~Rs 40,000. Such hurdles may prompt owners to send vehicles for scrappage. Owners who choose to scrap their vehicles will also receive a monetary benefit. If the vehicle fails to pass the test, then it’s considered as unregistered and making it illegal for road use. In India, over 51 lakh vehicles, both commercial and private are over 20 years - says the policy. Deporting these vehicles will help to reduce the vehicular pollution considerably.