Representational image | Photo: Mathrubhumi
The Ministry of Road Transport & Highways has approved scrappage policy which permits scrapping of vehicles used by government and public sector establishments that have completed 15 years of service.
A notice issued by the Ministry of Road Transport & Highways on Monday said that the policy will come to force from April 1, 2020. It is learned that all vehicles that are owned by central or state governments will come under the purview of this policy.
Last year, Union Minister for Transport Nitin Gadkari had announced that the government would implement the scrappage policy as it was committed to protecting the environment and preventing pollution. He evaluated that the scrappage policy will help the automobile industry recover from the crisis created by the COVID-19 pandemic.
In July 2020, the government had directed to bring laws to scrap 15-year-old vehicles based on nonrenewable energy resources. This was part of the government's move to promote electric vehicles.
The Centre expects that the introduction of the new policy and the law will help make India a new automobile hub. The government also hopes that it will reduce the price of vehicles and increase the revenue generated by the automobile industry by Rs 4.5 lakh crore including 1.45 lakh crore in export alone.
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