The impact of scrappage policy
According to the Road Transport and Highways Minister, the policy will boost the Indian automobile sector and reach a turnover of Rs 10 lakh crore in the coming years.
The vehicle pollution is nearly 15-30% (PM2.5 and PM10 level), majorly in the cities like Delhi. Hence the government is geared toward rolling out a scrappage policy to weed out old polluting vehicles and replace them with new ones.
The guidelines regarding the Scrappage Policy were rolled out by the government this year. Let us understand the implications of this policy :
1.This policy will encourage people to scrap their cars older than 20 years, while for commercial and heavy vehicles like trucks, buses, etc., the limit is set to be at 15 years.
- A rebate of up to 25 percent on-road taxes for newly purchased vehicles and a waiver on new registrations if the buyer holds the scrappage certificate.
3.The vehicle has to pass through an automated fitness test at the time of renewal. It is only after the clearance; the registration certificate would be awarded.
- The mandatory fitness testing of heavy commercial vehicles will start from April 2023, and for other categories, it will start from June 2024.
According to the Road Transport and Highways Minister, the policy will boost the Indian automobile sector and reach a turnover of Rs 10 lakh crore in the coming years. Not only this but it will also have a positive change on the environment.
What are your takes on this policy? How do you think it will shape the automobile industry?