New Delhi: While presenting the Union Budget 2021 on Monday, Finance Minister Nirmala Sitharaman announced that a new vehicle scrapping policy will be implemented soon. The policy will ensure old, inefficient vehicles are phased out in favour of environment-friendly vehicles.
“We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help encourage fuel-efficient and environment-friendly vehicles, thereby reducing vehicular pollution and oil import bills. More details will be shared soon by the Ministry,” said Sitharaman.
If a vehicle fails fitness test more than thrice, it is likely to be subjected to mandatory scrapping.
Currently, 51 lakh vehicles are over 20 years old and 34 lakh more than 15 years old.
Vehicular pollution is expected to reduce by up to 25 per cent if this policy is implemented. It will also lead to an increase in new vehicle sales, the government believes.
For vehicles older than 15 years owned by the government and PSUs, the policy would be effective from April 1, 2022.
