Let us know about Vehicle Scrapping Policy in India 2021

As we all know that the new vehicle scrapping policy has been announced recently in the latest Union Budget for Auto Sector 2021 and so let us understand in brief for clear understanding.

Nirmala Sitharaman, Minister of Finance of India, announced the new Vehicle Scrappage Policy 2021 which states that personal vehicles older than 20 years and commercial vehicles older than 15 years have to go through the fitness test which will help to control the rapidly increasing pollution in the country.

Image Source : newindiaexpress

She also said that this policy will encourage environmental friendly vehicles that runs on electricity, CNG or LPG. 

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According to Nitin Gadkari, road transport and highway minister, automobile industry gives the most number of employment in the country. This policy is likely to be implemented from 1st April 2021. Approximately 1 crore vehicles older than 20 year will go for scrap as soon as the new policy will be implemented. Also this will lower down the import of petrol and diesel.

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The left over scrapped materials like steel, plastic, rubber will also get recycled, which will decrease the automobile components by 35-40 %  this will build employment in the industry.

Image Source : indiatimes

He also shared the future plans of making India a vehicle manufacturing hub. Electric vehicles like electric cars, bikes, buses ect. are planned to manufacture and to be exported to the other countries.

What do you have to say about this policy? Please let us now in the comments below.