National Automobile Scrappage Policy Announced in India

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00


Policy , Announced

The Central government has taken what seems to be a step towards a more environmentally sustainable state of the affairs with respect to vehicles. Under this policy vehicles would be required to be scrapped on the basis of scientific testing as well, rendering unfit vehicles scrappable. This was presented in the Union Budget of 2021 and has now been launched. The policy also aims at improving fuel efficiency and thereby reducing the fuel import bills. This might also result in low-cost raw materials for manufacturers. Private vehicles that are over 20 years old and commercial vehicles that are more than 15 years old need to be scrapped. The rules on fitness tests and scrapping apply from October 1, 2021. A scrappage certificate will be issued once a vehicle is scrapped, thereby making the owner eligible for 4-6 % of the Ex-Showroom price, a rebate of up to 25 % on road tax, a rebate on the registration fee, and a suggestion to the vehicle manufacturer to give a discount of 5 % on new vehicles against a scrapping certificate.