ForumIAS LATEST
- Ethics Redbook 3rd Edition: A Textbook That Teaches You How to Think Ethically Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
What is the news?
The Finance Minister has announced the voluntary vehicle scrappage policy. It aims at phasing out old and unfit vehicles.
About vehicle scrappage policy
- Aim of the Policy: Scrappage policy will encourage fuel-efficient, environment-friendly vehicles on the road. Thereby It will reduce vehicular pollution and the oil import bill.
- Key Features :
- Under the policy, vehicles would undergo fitness tests after a certain period of time. In the case of personal vehicles, the duration is 20 years. In the case of commercial vehicles, this duration is 15 years.
- Each fitness test will cost approximately Rs 40,000. Other than that, old vehicles will have to pay green tax and road tax.
- If a vehicle fails a fitness test, it will not get a renewal certificate and won’t be able to run on the road.
- However, if it passes a fitness test, the vehicle will have to undergo a fitness test, after every 5 years.
- The aim of all these costs is to discourage consumers from keeping the older vehicle.
- The incentives for vehicle scrappage not announced yet. It is expected that the Government may announce some incentives and monetary benefits for the consumers scrapping their old vehicles.
Source: The Hindu
