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Vehicle Scrapping Policy 2021 Road Transport and Highways Ministry announced the Voluntary vehicle fleet modernisation programme. The programme is also known as the Vehicle scrapping policy. Why in news? Prime Minister Narendra Modi unveiled the National Automobile Scrappage Policy and said the initiative will promote a circular economy and make the process of economic development more sustainable and environmentally friendly. The policy, aimed at recycling old and unfit vehicles, will give a new identity to India’s mobility and auto sector, Mr Modi said in his address while virtually unveiling the initiative during an ‘Investors Summit’ organised in Gandhinagar. The summit, which saw the…
24 November, 2021
Automobile policy
Vehicle scrappage policy Scrappage policy can work if incentives are confined to fuel-efficient vehicle replacements Road map for scrappage policy The much-awaited vehicle scrappage policy announced by the Transport Ministry, coming after the move for a green tax on ageing and polluting automobiles, promises economic benefits, a cleaner environment and thousands of jobs. Although it will take until April 1, 2022, for vehicles belonging to the government and the public sector to be scrapped, another year thereafter to identify junk heavy commercial vehicles through mandatory fitness checks, and finally other vehicles by 2024, it is a constructive road map. Challenge…
22 March, 2021
Automobile policy
Vehicle Scrapping Policy Background It is also known as Voluntary Vehicle-Fleet Modernization Program. India has 51 lakh Light Motor Vehicles which are older than 20 years and 34 lakh Light Motor Vehicles which are older than 15 years. Around 17 lakh Medium and Heavy Commercial Vehicles are older than 15 years without valid fitness certificate. Older vehicles pollute the environment 10 to 12 times more than fit vehicles and pose a risk to road safety. The policy is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles. The objectives of the policy are to reduce population of…
19 March, 2021
Automobile policy
Vehicle scrappage policy soon The vehicle scrappage policy is likely to be finalised soon to boost the automobile sector. The Minister of Road Transport and Highways also said that his ministry has fixed a target to build highways worth Rs. 15 lakh crore in the next two years. Important Points The much-awaited vehicle scrappage policy is awaiting final clearance from the Union Cabinet, which will focus on eliminating the fleet of old polluting commercial vehicles plying on the country’s roads. The proposed policy, once approved, will be applicable on all vehicles including two and three-wheelers. Once the policy is approved, India could…
09 May, 2020
Automobile policy
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