PM Modi addresses CII Annual Meeting, 2021.
(Photo Courtesy: Video screengrab)
Prime Minister Narendra Modi launched the Vehicle Scrappage Policy in India on Friday, 13 August, at the Gujarat Investor Summit and requested youths and start-ups to join the programme.
Modi also mentioned that the government aims to create a viable circular economy and bring value for all stakeholders while being environmentally responsible.
Modi added: “The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey."
Describing it as a “waste-to-wealth mission", Modi remarked that the policy is an important part of the circular economy.
He added, “It (vehicle scrappage policy) will reduce pollution in our cities and also reflect the government's commitment towards rapid development. The policy will bring investments worth more than Rs 10,000 crore and, in the process, create employment opportunities for thousands of youngsters."
Personal vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo a fitness test at government registered ‘automated fitness centres’.
Vehicles that fail to pass the test will be declared as ‘end-of-life vehicles’, which would mean that the vehicle would have to be recycled. This will pave the way for older vehicles to be scrapped. In case, the vehicles pass the test, the owners will have to pay a hefty fee for re-registration.
According to the new policy, the re-registration fee would be hiked to around eight times for personal vehicles, and around 20 times for commercial vehicles.
In case you decide to scrap your old vehicle at the registered scrapping centres, you will get approximately 4-6 percent of the value of the vehicle’s ex-showroom price. The ex-showroom price is the cost of vehicle, excluding the charges paid for registering the vehicle at RTO and insurance.
Moreover, if you buy a new vehicle you will be given a flat 5 percent discount on presenting a scrapping certificate. Registration fees will also be waived on the purchase of a new vehicle.
Click here to read more about the policy.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)