Budget 2021: FM Sitharaman Announces Voluntary Vehicle Scrapping Policy to Phase Out Old Vehicles

New Delhi: Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman on Monday announced the much-awaited voluntary vehicle scrapping policy to phase out old and polluting vehicles. Under the policy, personal vehicles would undergo fitness test after 20 years while commercial vehicles would require it after completion of 15 years. The FM said the policy will help promote fuel-efficient and environment friendly vehicles while cutting on India’s huge import bills. Also Read – Budget 2021: Contributing Rs 2.5 Lakh or More to PF Annually? This Major Announcement is For You

She said, “We are separately announcing a voluntary vehicle scrapping policy, to phase out old and unfit vehicles. This will help in encouraging fuel efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill.” Also Read – Sitharaman Deceived Poor, Working Class, Migrants, Farmers: P Chidambaram on Budget 2021

“Vehicles would undergo fitness tests in automated fitness centres after 20 years in case of personal vehicles, and after 15 years in case of commercial vehicles. Details of the scheme will be separately shared by the Ministry,” she added. Also Read – Mamata Banerjee Slams Modi Government’s Budget 2021, Calls It Anti-Farmer, Anti-People and Anti-Country

Earlier Union Road Transport Minister Nitin Gadkari had said last week that policy to scrap more than 15-year-old vehicles owned by government departments and PSUs is likely to be notified soon and will be implemented from April 1, 2022. On July 26, 2019, the government had proposed amendments to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.

“We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy,” Gadkari had said on January 15.

The minister had also said that once the policy is approved, India will become an automobile hub and there will also be reduction in the prices of automobiles. He had said recycled material from old vehicles will help reduce the prices, adding that the automobile industry”s turnover, which is Rs 4.5 lakh crore with Rs 1.45 lakh crore exports, will get a boost.

(With PTI inputs)