Vehicle Scrapping Policy Gets Major Push In Budget 2023, FM Says It Will Provide Fillip To Economy
Finance minister Nirmala Sitharaman on Wednesday said that she has allocated adequate funds to scrap old vehicles owned by the central government, and states will also be supported in replacing old vehicles and ambulances.
Presenting the Budget for 2023-24, she said replacing old polluting vehicles is an important part of greening the economy.
Fillip to the Indian economy??
"The decision to replace old government vehicles will provide a fillip to the Indian economy. This will translate into growing order books, increased output, and create job opportunities."
"Digital ecosystem for skilling to be further expanded, To empower our youth, realized their dreams we have formulated the national education policy, Centre to support states to scrap old vehicles," the minister said.
9 lakh government vehicles to be scrapped
Earlier this week, Union minister Nitin Gadkari?said more than nine lakh vehicles, owned by central and state governments, transport corporations and public sector undertakings, that are older than 15 years old will go off the road from April 1 and new vehicles will replace them.
Vehicles older than 15 years to be scrapped??
According to a recent notification by the road transport and highways ministry, from April 1, all vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped.
The rule shall not apply to the special purpose vehicles (armoured and other specialised vehicles) used for operational purposes for the defence of the country and the maintenance of law and order and internal security, the notification had said.?
"Disposal of such vehicles shall, after the expiry of 15 years from the date of the initial registration of the vehicle, (should) be ensured through the Registered Vehicle Scrapping Facility set up in accordance with the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021," it had said.
Vehicle scrapping policy
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles and 15 years for commercial vehicles. Under the new policy, effective from April 1, 2022, the Centre has said states and Union Territories will provide up to 25 per cent tax rebate on road tax for vehicles purchased after scrapping old vehicles.
Last year, Gadkari had said he looked to develop at least one automobile scrapping facility within 150 kilometres from each city centre while asserting that the country has the potential to become a vehicle scrapping hub of the entire South Asian region.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in 2021 and said it would help phase out unfit and polluting vehicles and promote a circular economy.
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