Prime Minister Narendra Modi launched the much-awaited vehicle scrappage policy today. He said that the new policy will help in phasing out the unfit and polluting vehicles across the country and promote a circular economy.
Urging the youth and start-ups to join this program, the prime minister said the policy will provide a new identity to the mobility and auto sector in India.
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PM Modi on Scrappage Policy
According to Modi, the vehicle scrappage programme will give India’s mobility and auto sectors a new identity, and it will play a key part in modernising the vehicular population on city roadways while also helping to reduce pollution.
The prime minister, speaking via video conference at the Gujarat Investor Summit, said the new strategy will give India’s mobility and car sector a new identity. The summit was intended to attract and promote investment in the Voluntary Vehicle-Fleet Modernization Program’s vehicle scrapping infrastructure.
He said that today’s announcement of the Car Scrappage Policy is a watershed moment in India’s development, and that the Investor Summit in Gujarat to put up vehicle scrapping infrastructure will open up new avenues. Modi defined the circular economy as an economy in which things are intended for durability, reuse, and recyclability.
Modi said that India should work for “clean, congestion free and convenient mobility” in the 21st century and the policy will play a key role in “Waste to Wealth” program. He also said that this will also help in reducing pollution in the cities.
Features of Scrappage Policy
When an old car is scrapped, the owner receives the scrap value determined by the scrapping centre, which is typically 4-6 percent of the ex-showroom price of the new vehicle purchased. The initiative will incentivize owners of old automobiles to scrap their defective vehicles at registered scrapping centres, which will issue a scrapping certificate to the owners.
According to the policy, automakers should offer a 5% discount on the purchase of a new car in exchange for the scrapping certificate. A road-tax rebate of up to 25% for personal automobiles and up to 15% for commercial vehicles is also recommended in the new policy.
Private vehicles will be de-registered after 20 years if declared unfit or if the registration certificate is not renewed, according to the new car scrappage policy. Increased re-registration fees will apply to private automobiles 15 years and older from the date of original registration as a deterrent mechanism. If a commercial vehicle fails to obtain a fitness certificate after 15 years, the procedure of de-registration begins.