HomeOthersGeneral AwarenessVehicle Scrapping Policy in...

Vehicle Scrapping Policy in India : 2021

Vehicle scrapping policy 2021

Vehicle scrapping policy also called the “Voluntary Vehicle-Fleet Modernisation Programme”, was unveiled in Parliament in March 2021 by Road Transport & Highways Minister Nitin Gadkari. The aim of the government is to create a circular economy and bring value to all the stakeholders with an emphasis on the environment.

As per the policy, all the automobiles which have crossed a certain age should be off the roads in order to control pollution and safety, which is ensured by new vehicles. 

Commercial vehicles over 15 years old and personal vehicles over 20 years old are marked for scrapping. They will be scrapped if they fail an automated fitness test. They will be deregistered and the owner can choose to scrap them but not use them on the road.

Circular Economy AND Vehicle scrapping policy 

This kind of economy depends on reuse, sharing, repair, refurbishment, remanufacturing and recycling of resources to minimize usage, waste generation, pollution and carbon emissions.CAT 2022 Course

When scrapping is done, metals and many other parts can be refurbished to make some other product. Recycled steel, plastic parts, everything has value after being scrapped.

In the circular economy, products, materials, equipment and infrastructure are kept in use for a longer period, thus improving productivity.

Number of Vehicles

India has 51 lakh motor vehicles that are more than 20 years old and 34 lakh over 15 years old. 17 lakh medium and heavy commercial vehicles are over 15 years old.

India is currently not ready with the infrastructure to test for fitness or scrap vehicles in large quantities. Hence, everything will happen in a phased manner over a timeline. 

There are guidelines on what kind of Automated Fitness Centre will be set up and who can set up. Similarly, for scrapping yards. 

An ecosystem is being created where everything can happen seamlessly. 

Incentives

The government is giving the owners some incentives to motivate them towards scrapping their old vehicles. Those who have the scrapping certificate will get a tax rebate, sops and discount on new cars.

Also, the certificate will be tradable which means that it can be used by anyone and not just the owner.

In case, a vehicle passes the fitness test, then the owner can continue to use their vehicle but the charges for registration will be high. It will be hiked from 8 to 20 times depending on the vehicle.

This scrappage policy will help in boosting the economy as demand is being generated. There are many environmental benefits as well. The new cars that are being manufactured have better emission standards and better fuel efficiency. Hence, this new policy is the need of the hour considering rising pollution levels and global warming.

To structure your CAT online preparation in an efficient way consider joining iQuanta which is a top online cat coaching institute and being a part of the iQuanta CAT 22 Course.
You can also check out and be a part of their Facebook group for peer learning, doubt solving and free material.

For 24*7 doubts-solving, FREE guidance and counselling and peer to peer learning, join the CAT preparation Fb group below:

CAT preparation Fb group

CAT Topper Interviews

CAT Topper Bihar boy Avinash Singh 99.5%iler who belonged to a place with No School Cracks CAT

CAT 100 Percentiler Interview - Topper : Rishi Mittal Shares His Key Mantra

spot_img

Related

More from Author

CMAT 2023 Strategy | How to Prepare for CMAT 2023?

How to Prepare for CMAT The official dates for the Common Management...

NMAT 2022 Strategy | How to Crack NMAT 2022

NMAT 2022 Strategy  NMAT is the NMIMS (Narsee Monjee Institute of Management Studies)...

CAT Exam: Details, Syllabus, Pattern, Eligibility, Important Dates, Purpose!

Programs Offered by IIMs CAT exam is conducted by the reputed...
spot_img

Read Now

Profile Building For MBA and Its Importance

Profile Building- What does it mean? Academic excellence isn't enough when it comes to the greatest colleges in the world. You must have a wide range of interests, exceptional skill sets, and appropriate internships, among other things. At the simplest, profile building for MBA abroad and in India...

Hacks to Make Your Journey to IIMs Easier

CAT exam is a blend of concept learning, practising, time management and stress handling. These virtues happen to you with time. But some preparation hacks can get you past the finish line more conveniently. Here's to iHacks by iQuanta to ace the exam confidently. iHack 1: Learning through Consistent...

How Can I Justify the Gap Years in the Interview?

Half the year has passed, Mock Season is just around the corner and D-day is approaching. That said, the anxiety about the CAT exam is creeping in due to the gap years you may have due to specific reasons. But we heard you. Therefore, we have come...

5 Problems That You Come Across as You Plan to Take CAT!

All those preparing for CAT or planning to do often feel dilemma about numerous things. No matter how many nuggets of facts are provided, these problems are not answered explicitly. Hence, we have come up with the idea of the problem and solution model; to address the...

Get Rs 3000 off on iQuanta CAT Course

X