“Vehicle Scrappage Policy” to phase out old and unfit vehicles

What is the news?
The Finance Minister has announced the voluntary vehicle scrappage policy. It aims at phasing out old and unfit vehicles.

About vehicle scrappage policy

  • Aim of the Policy: Scrappage policy will encourage fuel-efficient, environment-friendly vehicles on the road. Thereby It will reduce vehicular pollution and the oil import bill.
  • Key Features :
    • Under the policy, vehicles would undergo fitness tests after a certain period of time. In the case of personal vehicles,  the duration is 20 years. In the case of commercial vehicles, this duration is 15 years.
    • Each fitness test will cost approximately Rs 40,000. Other than that, old vehicles will have to pay green tax and road tax.
    • If a vehicle fails a fitness test, it will not get a renewal certificate and won’t be able to run on the road.
    • However, if it passes a fitness test, the vehicle will have to undergo a fitness test, after every 5 years.
    • The aim of all these costs is to discourage consumers from keeping the older vehicle.
  • The incentives for vehicle scrappage not announced yet. It is expected that the Government may announce some incentives and monetary benefits for the consumers scrapping their old vehicles.

Source: The Hindu

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