The vehicle scrappage policy would apply to central and state government-owned vehicles effective from April 1, 2022.
The Ministry of Road Transport and Highways (MoRTH) on Monday approved the vehicle scrappage policy for vehicles owned by the government and PSU which are older than 15 years. This policy would apply to central and state government-owned vehicles effective from April 1, 2022. Last year, Union Minister, Nitin Gadkari, had said that the vehicle scrappage policy was one of the government’s priorities that is inclined towards curbing pollution. The proposed policy is aimed to create more demand in the automobile industry, which has been majorly affected by the pandemic.
MoRTH said in a statement issued on Monday, “The Minister… approved the policy of deregistration and scrapping of vehicles owned by Government department and PSU, which are above 15 years in age. It is to be notified, and will come into effect from 1st April 2022.”
Last year in July, the government proposed amendments to the Motor Vehicle Act to allow scrapping of vehicles that are older than 15 years to spur the adoption of electric vehicles in the country.
On the sidelines of scrappage policy, MoRTH has approved a proposal for the government to levy Green Tax on older vehicles. The Ministry aims to clean up the environment by phasing out unfit and pollution vehicles. The revenue collected through the green tax will be used to tackle pollution.
The Union Minister said, “We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy.”
He also said that once the policy is approved, India will become an automobile hub and there will also be a reduction in the prices of automobiles. He had previously also said that the automobile industry’s turnover will get a boost which is around ₹ 4.5 lakh crore with over 1.45 lakh crore of exports.