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The government had announced the vehicle scrappage policy in the country earlier this year. This initiative was started to deal with the rapidly growing problem of air pollution in the country.
Vehicle scrappage policy is starting from 1st October in India. Union Minister Nitin Gadkari has announced that such vehicle owners who will get their old vehicles scrapped under the Vehicle Scrappage Policy, will be compulsorily given a rebate of up to 25 percent in road tax by the respective state government on the purchase of new vehicles.
Nitin Gadkari told in a press conference that the central government has asked the states to reduce the road tax, so that people can be encouraged to scrap their old vehicles. However, he also said that the states would be at liberty to decide the percentage of exemption. The Center has only fixed the maximum limit for exemption in road tax. Under this policy, a provision has been made to give 25 percent exemption in road tax to private vehicles and up to 15 percent for commercial vehicles. Some states are still confused about the exemption limit.
Interacting with Media on ‘Vehicle Scraping Policy & Opportunities’. #CircularEconomy https://t.co/lXTyyN1Gaa
— Nitin Gadkari (@nitin_gadkari) August 17, 2021
The central government had announced the vehicle scrappage policy in the country earlier this year. This initiative was started to deal with the rapidly growing problem of air pollution in the country. It is believed that this step will also give a boost to the Indian automotive industry. The central government may issue the notification of the scrapping policy by the end of September this year. Prime Minister Modi has launched this policy on August 13 at an investor summit held in Gujarat. The summit was organized by the Ministry of Road Transport.
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Actually, such vehicle owners who drive vehicles even after the end of the registration time, it will be mandatory for them to get fitness for it. Under the scrappage policy, the registration time of a passenger vehicle has been fixed at 20 years. At the same time, the term of commercial vehicles will be 15 years.
If the vehicle fails the fitness test then it will be treated as end of life vehicle. Instead of applying for registration once again, the vehicle owner will be encouraged to dispose of the vehicle under the scrap policy. Not only this, if vehicles that do not pass the Automated Fitness Test are found plying on the road, they will also be confiscated by imposing heavy fines.
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If vehicle owners opt for a scrap policy, they will also be given a scrap rate ranging from 4 to 6 percent. Also, on the purchase of a new vehicle, up to 25 percent road tax exemption will be given. For this, the certificate of the scrap vehicle will also have to be shown. This policy will come into effect from October 1. In this, vehicles of government and public sector undertakings above the age of 15 years will be canceled from April 1, 2022. At the same time, the mandatory fitness test for heavy commercial vehicles will be implemented from April 1, 2023. Thereafter, the fitness tests of other segments will be implemented in a phased manner from June 1, 2024. At present, there are plans to open 26 scraping and fitness test centers across the country.