THE OLD VEHICLE SCRAPPING POLICY 2021
Union Finance Minister Nirmala Sitharaman presented the Annual Budget which holds great significance primarily because it is the first budget since the outbreak of the Covid-19 pandemic. While there are plenty of talking points of the latest budget, one highlight which certainly got noticed by folks in the automotive industry was the introduction of a Vehicle Scrappage policy. The new policy will be applicable to cars and commercial vehicles which are older than 20 or 15 years, respectively. This scheme will require all private vehicles older than twenty years to undergo a fitness test. According to the Finance Minister, this fitness test will be conducted at automated fitness centres which will evaluate whether or not the vehicle in question is fit to run on roads. If not, the vehicle will then head to a scrap yard. While it is possible for a vehicle to pass the fitness test, each such test would set back an owner by Rs 40,000. In addition to this, one has to pa...