DNA Exclusive: How scrappage policy will help vehicle owners

New Delhi: The Union Transport Minister Nitin Gadkari on Thursday introduced the Vehicle Scrappage Policy Policy within the Lok Sabha. The policy which is touted as a high measure to spice up the Indian vehicle sector, will help to scale back air pollution and enhance street security. The policy was introduced by the Union finance minister Nirmala Sitharamn on February 1.

Zee News Editor-in-Chief Sudhir Chaudhary explains in easy language what is that this new vehicle scrappage policy, what’s its significance and the way it will impact the folks of India.

Under the scrappage policy, previous automobiles will need to move health check earlier than re-registration and as per the policy authorities industrial automobiles greater than 15 years previous and personal automobiles that are over 20 years previous will be scrapped.

The scrappage policy can also be essential as a result of older automobiles exert 10 to 12 occasions extra air pollution than fitted automobiles and are an even bigger risk to street security 

Old automobiles will be examined on the Automated Fitness Center and the health check of the automobiles will be carried out in accordance with worldwide requirements. 

Emission check, braking system, security parts will be examined and the automobiles which fail within the health check will be scraped.

Not simply this, the scrappage policy will additionally profit vehicle owners. Nitin Gadkari mentioned within the Lok Sabha that below the scrappage policy vehicle owners whereas shopping for a brand new vehicle will get a rebate of 4 to six per cent off the entire worth. 

Apart from this, the state governments could also be suggested to supply a road-tax rebate of as much as 25% for private automobiles and as much as 15% for industrial automobiles.

Vehicle producers will additionally give a reduction of 5% to individuals who will produce the ‘Scrapping Certificate’ and registration charges will be waived off on the acquisition of a brand new vehicle.

Currently there are round 51 lakh mild motor automobiles in India that are greater than 20 years previous and there are 34 lakhs automobiles whcih are greater than 15 years previous.

There are about 17 lakh medium and heavy industrial automobiles that are greater than 15 years previous and working with out the required ‘Fitness Certificate’. 

Another benefit of yhis policy is that scrap supplies will get cheaper and that will cut back the manufacturing price of the vehicle producers. It additionally estimated to offer employment to about 3 crore 70 lakh folks within the automoblile sector.

In the brand new health facilities, 35 thousand folks will get employment and an funding of Rs 10,000 crores will be pumped in. The authorities treasury is anticipated to get round Rs 30,000 to 40,000 crores of cash by GST from this policy.

The guidelines for creating Fitness Test and Scapping Centers will come into impact from October 1, 2021 whereas the scrapping of automobiles of 15-year-old authorities and PSUs will begin from April 1, 2022 and heavy automobiles from April 1, 2023.

Fitness check will be made obligatory for industrial automobiles and from June 1, 2024, health check will be made obligatory for all different classes of automobiles in a phased method.