What Is India’s New Vehicle Scrappage Policy 2021?

The policy aims to phase out unfit and polluting vehicles.

Vehicle Scrapping Policy India
Image: Spinny

The Indian Government has launched a new vehicle scrappage policy to remove the old vehicles. The primary objective of this policy is to phase out unfit and polluting vehicles from the roads.

The prime minister of India, Narendra Modi, tweeted, “The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme.

He further added that this new policy will create around 35,000 new jobs. Anyway, let’s explain to you everything we know about the new vehicle scrappage policy 2021.

What Is Vehicle Scrappage Policy 2021?

Vehicle Scrapping Policy 2021
Image: Economic Times

The 2021 vehicle scrappage policy is aimed at creating an ecosystem for eliminating the old, polluting, and unfit vehicles in an environment-friendly manner.

The government plans to do it by creating registered scrapping facilities all over the country. There’ll be automated stations with advanced machines.

Vehicle Scrappage Policy Applies On Which Vehicles?

According to Union Minister Nitin Gadkari, all commercial vehicles over 15 years old and private vehicles more than 20 years old will have to through a fitness test.

If the vehicle fails in the test it’ll be marked for scrapping. Those vehicles will be seized and destroyed. The owners will be provided a certificate through which they can avail multiple benefits like incentives on new vehicle purchases and GST rebates.

Also, in the case of commercial vehicles, if the owner wishes to retest then there’ll be an increased fee for the fitness test and fitness certificate as well.

Meanwhile, for the private vehicles, increased re-registration fees will be imposed on 15-year-old vehicles from the date of initial registration. You can read the detailed policy here.

When The Policy Will Be Implemented?

As per the guidelines, the government intends to start the mandatory testing of heavy commercial vehicles from April 2023. It’ll start from June 2024 for the rest of the categories.

However, the policy will be effective from April 2022 for government-owned policies.

What About The Vintage Cars?

The government is yet to take a final decision about vintage cars.

Since vintage cars are important in preserving the heritage of the country, they might be exempted from the law.

How Owners Can Benefit From The Vehicle Scrappage Policy?

All those whose vehicle gets scrapped will be eligible for a rebate of up to 25 percent on your next private vehicle’s road tax and up to 15% on commercial. Also, the registration tax on your next car will be waived off completely.

This is not it, if your vehicle gets scraped then you’ll get around 4-6% value of the ex-showroom price of a new vehicle. Furthermore, you’ll get a 5% discount on the purchase of a new vehicle against the scrappage certificate.

So these were some of the most important highlights of the new vehicle scrapping policy. We hope it would be helpful for you.

Shaheer Anwar

Shaheer Anwar

Shaheer Anwar is an automotive enthusiast and writes about the latest trends happening in the industry. He covers topics related to electric and hybrid vehicles.
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