With the introduction of Budget 2021, it came to light that a new scrappage policy is also in the works. With the aim of removing old cars that are unfit for running on the roads, the government has recently given in further details regarding this new policy. In this article, we will discuss the new scrappage policy and the benefits that it will have for you.

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What is the new Vehicle Scrappage Policy?

Vehicle Scrappage Policy

The government has aimed to control the continuously-rising pollution levels in the country. For reaching this goal, the government has brought in the scrappage policy, under which private vehicles older than 20 years and commercial vehicles older than 15 years will have to mandatorily undergo automated fitness tests. Also, government and PSU vehicles older than 15 years will have to undergo the test.

It has been found out that old vehicles generate 10 to 12 times more pollution in comparison to a new vehicle. With the introduction of this policy, the government will be able to remove unfit cars from the roads, directly addressing the pollution problem. The automated fitness tests are expected to begin from April 1, 2023, for heavy vehicles, whereas for others, the tests would start from June 1, 2024, in a phased manner. The policy is, however, not applicable to vintage cars, enabling collectors to not worry about their vintage collection.

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What are the benefits?

People scrapping their vehicles before buying a new one will get a 5% rebate on the new car. After the car has been successfully registered for scrapping, a scrapping certificate will be made available, with which the car buyer can avail of the incentive. Also, the state governments have been advised to give a 25% rebate on road tax for private vehicles and 15% for commercial vehicles as an added benefit.

With the policy in the initial developing stages, more benefits and incentives are expected to be added in order to encourage people to scrap their old cars.

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