Transport Minister Nitin Gadkari on Thursday announced the details of the vehicle scrappage policy in India. The central government had announced the scrappage policy during the Union Budget 2021 speech by Finance Minister Nirmala Sitharaman. With the new scrappage policy, the government aims to bring new vehicles on roads to control enormous pollution caused by old vehicles. Vehicles which are old and creates pollution will be eligible for scrappage. Scrappage of old vehicles will make the roads safer and air cleaner. Union Budget 2021: Vehicle Scrappage Policy Announced By Finance Minister Nirmala Sitharaman.

Personal vehicles that are more than 20 years old will be de-registered from June 1, 2024, if they fail an automated fitness test or their registration is not renewed. Similarly, 15 year-plus commercial vehicles will be de-registered from April 1, 2023. Moreover, the government will introduce a mandatory obtaining of fitness test certificates for personal vehicles from automated testing centres in the 10 most polluted cities in India.

Increased fees for fitness certificate and fitness test may be applicable for commercial vehicles 15 year onwards from the date of initial registration. The re-registration charges of all vehicles are likely to be hiked from eight to around 20 times depending on the type of vehicle. The charges will be applicable from October 2021. Gadkari said that a five percent discount will be offered to people for scrapping their old vehicles. In addition to this, the Ministry has urged some relief in GST for buying new vehicles by scrapping old vehicles. The Centre has also suggested states to give discounts of up to 25 percent in road tax for newly purchased vehicles along with renunciation of registration charges for those who produce scrappage certificates.

(The above story first appeared on LatestLY on Mar 19, 2021 12:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website