New Vehicle Scrappage Policy Launched By Prime Minister Narendra Modi


On Friday, Prime Minister Narendra Modi launched the Vehicle Scrappage Policy and called it “a significant milestone in India’s development journey.”

vehicle policy

The policy’s objectives are to reduce the population of old and defective vehicles, achieve a reduction in vehicular air pollutants to fulfill India’s climate commitments, improve road safety, among others. 

Here’s All You Need To Know About The Policy

What Is Its Purpose?

 If certificate commercial vehicles fail to get a fitness after 15 years, the policy will scrap them. In the case of private vehicles, the time limit is 20 years.

The Prime Minister said the policy would create a viable circular economy of reuse, recycle, and recovery. This would, in turn, result in value for all stakeholders while being environmentally responsible. 

The Prime Minister said the policy would be a major step in the waste-to-wealth drive. This policy demonstrates India’s commitment to reducing urban pollution and conserving the environment.

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When Will The Policy Implementation Take Place?

They will be first implementing the policy for government-owned vehicles from April 2022.  Heavy commercial vehicles will have this policy implemented in it the following year. Further, they will implement personal vehicles from 2024.

Other Benefits

The policy may also waiver the registration fees for purchasing a new vehicle. But, they will only waiver this fee upon getting the old vehicle scrapped.

The scheme also proposes several incentives which the owners can avail of after receiving a scrapping certificate. This scheme includes scrap value for an old vehicle, which is expected to be 5-6% of the price of a new vehicle.

The policy provides a certificate to the government to people who give up their old vehicle for turning it into scrap. Under this policy, they will charge no registration fee to purchase a new vehicle for people who possess this certificate. 

This way, the automobile industry is one step ahead with its long-sought goal of a scrappage policy. They wanted a policy that gets older vehicles off the roads and generates demand for new ones. Hence, this policy serves the purpose. 


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