Monday, March 08, 2021
By Kamal Swami
Scrap Your Old Car And Enjoy 5% Discount On Purchase Of A New Car
In the recently announced Union Budget 2021-22, the central minister of Finance Honorable. Nirmala Sitharaman had announced the new vehicle scrappage policy for vehicles that more than 15 years old and running on the Indian roads. Although, the policy is still in draft mode and details of yet are to come out after receiving suggestions from the states. Now the Union Minister of Road Transport and Highways Honorable Nitin Gadkari has said that the new vehicle buyers willing to sale their vehicle under the new Vehicle Scrapping Policy will be offered the discount of 5% on the purchase of the new vehicle.
According to the new scrapping policy for the vehicles announced in the Union Budget, the personal vehicles which are more than 20 years old will be required to receive the fitness certificate from the regional transport office of their respective region. Whereas the owners of the commercial vehicles will be required to receive the same certificate after 15 years. In the words of Union Minister of Road Transport and Highways “Automobile manufacturers will provide about 5 per cent rebate on new car purchases in lieu of scrapping of the old car.”
The Minister of Road Transport and Highways also said that “There are four major components of the policy…Apart from the rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout the country and we are working in that direction.”
It is reported that the centres for the automated fitness tests will be managed under public-private partnership (PPP) mode and will be assisted by the government authorities. The vehicles which could not clear the fitness test will be fined. According to the road transport and highways minister, with the implementation of this policy, the automobile sector will offer new job potentials for the youth and will emerge as one of the highly profitable sectors of the Indian economy. It is believed that it will also help the Indian automobile industry to come out from the losses which it faced due to the global pandemic COVID-19.