NewDelhi February 8 :Under the government’s proposed vehicle scrappage policy, buyers of new vehicles stand to get benefits if they opt to scrap their old and polluting vehicles, said Union Minister for Road Transport & Highways Nitin Gadkari.<\/p>\n
The Road Transport & Highway ministry is yet to share the details of the policy which was proposed by Finance Minister Nirmala Sitharaman while tabling the Union Budget 2021. The vehicle scrapping policy had long been on the demand list of auto manufacturers and dealers reeling under the adverse impact of the Covid-19 pandemic.<\/p>\n
It entails fitness tests after 20 years for personal vehicles and 15 years for commercial vehicles.<\/p>\n
Gadkari said the policy will lead to a 30% boost for the auto industry’s turnover to Rs 10 lakh crore in the years to come.<\/p>\n
“Those going for the scrapping of their vehicles will get some benefits from the manufacturers. In fact, scrapping policy will prove to be a boon… not only it will boost the economy, benefit automobile sector but also check vehicular pollution,” Gadkari, who also holds MSME portfolio, Gadkari told the news agency PTI.<\/p>\n
He also said the finer details of the policy will be unveiled very soon, exuding confidence that will help the industry to become one of the biggest employers in the country.<\/p>\n
The minister clarified that there is a provision of ‘green tax’ who do not opt for the scrapping of their old vehicles other than strict fitness tests in automated facilities.<\/p>\n
Secretary, Road Transport and Highways, Giridhar Aramane said the scrapping of vehicles will carry some benefits, pointing out that an old four-seater Sedan will result in losses of Rs 1.8 lakh in five years while for a heavy vehicle it comes to Rs 8 lakh for a period of three years.<\/p>\n
He added that the policy is mandatory and all old vehicles will be subjected to automated fitness tests done without any human intervention, corruption or fudging of data.<\/p>\n
He further added that while fitness tests will be set done under a public-private partnership (PPP) model with a similar set up for scrapping centres.<\/p>\n
“Structure and framework of scrapping policy is under work and green tax has already been notified. Many states have notified in ineffective way ….We want to advise the state governments through notification under Motor Vehicles Act to consider imposing green tax on older vehicles which cause more pollution,” Aramane told PTI.<\/p>\n
Driving vehicles which do not pass the fitness test will attract huge penalties and also be impounded.<\/p>\n