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Nitin Gadkari on vehicle scrappage policy India, know here charges, discount & tax march-2021

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vehicle scrappage policy india

The vehicle scrappage policy India is the major step to boost Indian automobile sector, after Covid-19 and lockdown phase impacted the automobile industry

Union minister Nitin Gadkari has presented an outline over the upcoming vehicle scrappage policy India in Lok sabha.

Nitin Gadkari the much awaited scrappage policy will focus on boosting the economy by removing older vehicles and introducing newer ones in the Indian roads, and this policy also helps in curing pollution by taking old polluting vehicles off the road.

  • Nitin gadkari vehicle scrappage policy india to be implemented soon,

Gadkari added-driving vehicles that fail the automated fitness tests will not only attract huge penalties but will also be impounded.

What is the vehicle scrappage policy India?

The Scrappage policy is meant to remove all the old vehicles on the road, and it aims to go step by step,

Finance Minister Nirmala Sitaraman Had also announced in Budget 2021 That private vehicle older than 20 years and commercial vehicles older than 15 years will undergo Vehicle fitness test, and Scrapped out If failed to pass so.

vehicle scrappage policy

Why Vehicle scrappage policy is needed?

The vehicle scrappage policy has been taken out to promote the automobile sector as well as to promote E-vehicles to be introduced in the Indian market.

The Indian government focuses on the factors affecting the petrol/diesel price. therefore, if numbers of old vehicles go off the road than automatically there will be less demand of petrol and diesel said Nitin Gadkari

nitin gadkari

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Key Points On Vehicle Scrappage Policy India:


Boosting up automobile sector :

This policy got the one way opportunity for gaining out the automobile sector after a huge loss in graphs of automobile in india.

Introducing E-vehicles In India:

This policy surge to lower down the scope of old vehicles in india as well after this Tesla(world’s largest E-vehicles makers) coming to take up Indian market.

As Finance Ministry Stated that automobile sector directly affected by Covid-19 crisis so, to boost up the manufacturing this policy got introduced.

Nitin Gadkari vehicle scrappage policy india 2021

Affecting demand chart of petrol/diesel :

The vehicle scrap policy make a huge impact on the demand of petrol as millions of vehicles go down to scrap so, ultimately the petrol/diesel price may surge in sudden fall.

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The Indian government focuses on the factors affecting the petrol/diesel price. therefore, if numbers of old vehicles go off the road than automatically there will be less demand of petrol and diesel said Nitin Gadkari

how many old Vehicle will be affected?

Vehicle scrappage policy India: There are around 253 million total number of vehicles in fiscal year 2019, Number of operating vehicles in India FY 1951-2019. In a country with the third largest road network in the world,

This policy would cover approx. 51 lakh light motor vehicle that are above 20 years of age while another 34 lakh LMVs are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.

Fitess renewal charges for old vehicles :

If any vehicle fall older than 15 years, is set to go between five to 62 times higher as compare with previous charges of renewal certification, as the centre government poses it to make a tough deal for old vehicle owners so that they replace it with a new one.

For Individual : fee for renewing the registration of vehicles older than 15-year will be eight times higher than the current price.

For two-wheeelers : the charges of renewal of registration certificate would be Rs 1,000 compared to the current fee of Rs 300.

For imported vehicle : the proposed renewal fee is Rs 40,000 for complex imported vehicles.

For transport vehicle : Total Rs 10,000 will be charged for renewal and grant of fitness certificate for medium goods or passenger motor vehicles.

For taxi-cab : the charges would be Rs 7,000 for renewal of cab RC.

For three-wheeler : it would go up to Rs 3,500.(not confirmed yet)
Other than this, the amount of penalty for delay in renewing the registration certificate is Rs.300 to Rs.500 for personal vehicle and Rs.50 for commercial vehicles.

Old vehicles are estimated to cause 10-12 times more pollution if used further by the user, so for that Nitin Gadkari added -Green Tax will be imposed on this kind of vehicles excluding CNG vehicles.

When will Vehicle scrappage policy implemented in India?

The policy will be going to take in action in the near future soon said Nitin Gadkari. The proposed legislation will come into effect from 1stOctober,2021.

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