DNA Exclusive: How scrappage policy will help vehicle owners

New Delhi: The Union Transport Minister Nitin Gadkari on Thursday announced the Vehicle Scrappage Policy Policy in the Lok Sabha. The policy which is touted as a top measure to boost the Indian automobile sector, will help to reduce pollution and increase road safety. The policy was announced by the Union finance minister Nirmala Sitharamn on February 1.

Zee News Editor-in-Chief Sudhir Chaudhary explains in simple language what is this new vehicle scrappage policy, what is its importance and how it will effect the people of India.

Under the scrappage policy, old vehicles will have to pass fitness test before re-registration and as per the policy government commercial vehicles more than 15 years old and private vehicles which are over 20 years old will be scrapped.

Old vehicles will be tested at the Automated Fitness Center and the fitness test of the vehicles will be conducted according to international standards. 

Emission test, braking system, safety components will be tested and the vehicles which fail in the fitness test will be scraped.

Not just this, the scrappage policy will also benefit vehicle owners. Nitin Gadkari said in the Lok Sabha that under the scrappage policy vehicle owners while buying a new vehicle will get a rebate of 4 to 6 per cent off the total price. 

Apart from this, the state governments may be advised to offer a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles.

Vehicle manufacturers will also give a discount of 5% to people who will produce the ‘Scrapping Certificate’ and registration fees will be waived off on the purchase of a new vehicle.


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