New Delhi: Finance Minister Nirmala Sitharaman has proposed the much-awaited vehicle scrapping policy. Under this, the Finance Minister has announced 43 thousand crore rupees to get rid of the damaged vehicles so that the consumption in the auto sector can be increased while keeping the environment safe as well. Addressing the House, Nirmala Sitharaman stated that, “We announce a voluntary vehicle scraping policy to phase out old and unfit vehicles in a systematic manner. This will help encourage fuel-efficient and environmentally friendly vehicles, thereby reducing vehicular pollution and fuel bills. "
It is to be noted that under this policy, 20 years old private and 15 years old commercial vehicles will have to undergo fitness testing at the vehicle automatic fitness centers. Any vehicle that would not meet expected standards will be scrapped. The purpose of the vehicle scraping policy is to get old polluting vehicles off Indian roads and send them on the scrapway. In fact, the resale value of vehicles over 15 years old is also very low and these vehicles also pollute the environment in a hazardous way. In such a situation, the government will give appropriate compensation to the owners on sending those vehicles to the junk, which will help them in buying a new vehicle.
This will not only help environment, but would be helpful to arise demand in the auto industry. Also, the vehicles being dismantled by this process will produce a variety of parts and metals that can be recycled and used to manufacture new vehicles as well as new products.
Nirmala Sitharaman has also made it clear that the complete details of the schemes related to this policy will be shared separately by the Ministry. Significantly, the vehicle scraping policy is one of the most discussed issues in the Indian auto industry for the last several months, a long overdue and much awaited plan. A few days ago, Union Road, Transport and Highways Minister Nitin Gadkari approved the scrap policy of more than 15 years old government department and public sector vehicles. The new vehicle scraping policy will be effective from 1 April 2022.