Scrappage Policy: BIG announcement by Nitin Gadkari on new vehicle purchase

Scrappage Policy: Indian government has been proactive in regard to the scrappage policy implementation. In fact, Finance Minister Nirmala Sitharaman has made it clear in her budget speech that Scrappage Policy will become a reality.

Gadkari said that people who junk their old vehicles and buy a new one under the purview of India's vehicle scrappage policy will receive about 5 per cent rebate from automakers on the new purchase vehicles. Photo: PTI

Scrappage Policy: Indian government has been proactive in regard to the scrappage policy implementation. In fact, Finance Minister Nirmala Sitharaman has made it clear in her budget speech that Scrappage Policy will become a reality. Now, Union Minister Nitin Gadkari has been taking care of the progress work in this regard. While speaking on the current progress in regard to the Scrappage Policy in India, Gadkari said that people who junk their old vehicles and buy a new one under the purview of India's vehicle scrappage policy will receive about 5 per cent rebate from automakers on the new purchase vehicles.

Commenting upon the recent developments in regard to the scrappage policy Indian minister Nitin Gadkari said, "Automobile manufacturers will provide about 5 per cent rebate on new car purchases to the consumers in lieu of scrapping the old. There are four major components of the policy...Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout the country and we are working in that direction."

WATCH | Click on Zee Business Live TV Streaming Below:

TRENDING NOW

As per the Scrappage Policy in India, private vehicle owners will get incentive on new purchases from the automakers on scrapping one's 20 year old vehicle. For commercial vehicles, the time-period is 15 years to avail scrappage policy incentive from the automakers on new purchases without the fitness test.

However, the government hasn't yet shared specifics about the fitness tests, but from what we know so far, private and commercial vehicles over 20 and 15 years old, respectively, will be required to undergo a fitness test at government's automated vehicle fitness centers. Above mentioned automated fitness test centres will be set up under public private partnership (PPP) mode and the government will also aid private partners and state governments to establish scrapping centres.

TAGS: