Private and commercial vehicles that are more than 20 and 15 years old, respectively, must pass “fitness checks,” according to the policy.
Prime Minister Narendra Modi unveiled the National Automobile Scrappage Policy on Friday, calling it a “major step towards Aatmabirbhar Bharat.” PM Modi introduced the strategy while virtually speaking at the Gujarat Investor Summit. Union finance minister Nirmala Sitharaman revealed it in her Budget speech in February.
The following is everything you need to know about the policy:
(1.) The policy suggests that private and commercial vehicles over the age of 20 and 15 years undergo “fitness checks.” The registration of such cars will be automatically cancelled if a “fitness certificate” is not provided.
2.) It also suggests that all government vehicles older than 15 years be scrapped, however this is only applicable to four-wheelers.
(3) The fitness tests will be conducted at government-approved fitness centres, with appointments available online. In the online mode, test reports will be generated. Scrapping can also be done anywhere in the country, regardless of where the car is registered.
4.) The scheme also includes a number of incentives that owners can take advantage of after receiving a scrapping certificate. This includes the previous car’s scrap value, which is projected to be roughly 6% of the cost of a new vehicle.
(5.) The strategy also proposes a road tax rebate of up to 25% for new personal vehicles and 15% for new commercial vehicles, as well as a 5% discount on the scrapping certificate.
6.) When the old car is scrapped, the registration expenses for the new vehicle may be waived as well.
(7.) Union transport minister Nitin Gadkari stated in March that the strategy would bring in investments worth more than ten billion rupees and create up to 50,000 jobs.
