PM Modi announces Vehicle Scrappage policy in India
Indian Prime Minister Narendra Modi announced the start of the Vehicle Scrappage Policy in India. In the virtual conference, PM Modi said that this is a significant milestone as far as India’s development is concerned.
The meeting was joined by several ministers including Nitin Gadkari, who is the minister for Road Transport and Highways. The policy is said to be important since over polluting and unfit road vehicles need to be scrapped on an immediate basis from all the states of the country.
Minister Gadkari added by saying that more than one crore vehicles have been found without valid fitness certificates. These are either still plying on the roads or parked to rot. While the age of the vehicle isn’t going to be criteria for it to be scrapped, this also gives a fresh lease of life to vintage as well as classic cars. Scientific disposal of old as well as polluting vehicles will be carried out.
It is also believed that with the implementation of this new policy, we will be able to cut down the cost by 40 percent of raw material and eventually see reduced prices of vehicles for the customers. Bringing good news for the buyers, that this policy will allow them to avail themselves heavy discounts and incentives.
Starting from April 2022, it will begin with removing the government vehicles that are 15 years and older. It will be expanded to unfit heavy commercial vehicles from 2023, and personal vehicles older than 20 years will be covered from June 2024.
Automobile customers can also expect some rationalization in the prices of vehicles, but the extent of benefits that the manufacturers pass on to buyers eventually is not known yet.
Giridhar Aramane, who is the secretary in the Ministry of Road Transport and Highways mentioned that the association of automobile manufacturers is also going to offer some discount on the purchase of new vehicles and the certificate of deposit for the scrapped vehicles.