Get 5% discount on new car after scrapping your old one
Vehicle scrappage policy will also lead to an increase in the country's automobile industry turnover to Rs 10 lakh crore from the current Rs 4.5 lakh crore, Union minister Nitin Gadkari said
New Delhi: The vehicle scrappage policy will be a “win-win” policy that will eventually help in improving fuel efficiency and reduce pollution, Union minister Nitin Gadkari said on March 18.
Making a statement regarding vehicle scrappage policy in the Lok Sabha, the Road Transport, Highways and MSMEs Minister said the policy will also lead to an increase in the country’s automobile industry turnover to Rs 10 lakh crore from the current Rs 4.5 lakh crore.
Announced in the 2021-22 Union Budget, the policy provides for fitness test after 20 years for personal vehicles, while commercial vehicles would require it after the completion of 15 years.
Gadkari has also issued an advisory to automakers, advising them to provide an incentive of a 5% rebate for those buying a new vehicle after producing a scrapping certificate.
Noting that the policy will be a “win-win” policy, the minister said it will help improve fuel efficiency, reduce pollution and GST income will also rise due to the purchase of new vehicles.