Key points:
• Automated fitness tests will be set up under public private partnership (PPP) mode. The government will assist private partners and state governments for scrapping centres.
• The minister claims that this could lead to 30% boost to the Indian automobile industry turnover to Rs 10 lakh crore in the years to come from the present about Rs 4.5 lakh crore.
The Voluntary vehicle scrapping policy was announced at the Union Budget 2021-22. In this policy, personal cars after 20 years will have to get fitness certificate. On the other hand, commercial vehicles would require this certificate after the completion of 15 years.
Union Minister, Nitin Gadkari said that consumers who are looking to junk their old vehicles and buy a new one under the Vehicle Scrapping Policy will receive about 5% rebate on new purchase.
“Automobile manufacturers will provide about 5 per cent rebate on new car purchases” to the consumers in lieu of scrapping of the old, Road Transport, Highways and MSMEs Minister Gadkari told.
“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,” Gadkari said.
Automated fitness tests will be set up under public private partnership (PPP) mode. The government will assist private partners and state governments for scrapping centres. Driving vehicles which failed to pass fitness test will attract huge penalties and also be impounded. Nitin Gadkari believes that this policy will make automobile sector one of the most profitable and would generate huge employment. This is a major step to boost the Indian automobile sector, which is reeling under the adverse impact of the COVID-19 pandemic.
The minister claims that this could lead to 30% boost to the Indian automobile industry turnover to Rs 10 lakh crore in the years to come from the present about Rs 4.5 lakh crore. He further said that once the policy comes to practice availability of scrapped material like steel, plastic, rubber and aluminium etc will be used in manufacturing of automobile parts which in turn will reduce their cost by 30-40%. The policy is expected to give a boost of new technologies with better mileage of vehicles. It will also promote green fuel and electricity and will also reduce India’s huge Rs 8 lakh crore crude import bill. Minister believes that about 1 crore polluting vehicles would go for scrapping in initial stage. This comprises of around 51 lakh LMVs that are above 20 years and 34 lakh LMVs that are above 15 years. It would also cover around 17 lakh medium and heavy motor vehicles, which are above 15 years of age.
