New Delhi: Prime Minister Narendra Modi announced on Friday August 13 the launch of the National Automobile Scrapping Policy. Speaking on the sidelines of the Investors Summit – Gujarat, Prime Minister Modi called the new program “an important step towards Aatmabirbhar Bharat”.
âThe scrapping policy will give a new identity to the country’s automotive sector. It will play a huge role in removing unsuitable vehicles from the roads and bring positive change in all sectors and not just in the automotive sector, âsaid the Prime Minister. Notably, the national auto scrapping policy was first announced by Finance Minister Nirmala Sitharaman in her 2021 budget speech.
To know about the national car scrapping policy:
1. Aptitude tests for private and commercial vehicles
The national car scrapping policy has made it compulsory for all private and commercial vehicles to undergo “aptitude tests” as soon as they are 20 and 15 years old, respectively.
2. What happens if the vehicle does not pass a proficiency test?
If a vehicle that is to pass a proficiency test ignores it, the registration of the four-wheeled vehicle will be automatically revoked.
3. Where will the fitness tests be done?
Government-certified fitness centers have been tasked with performing the vehicle aptitude tests. Owners will also be able to generate fitness reports online.
4. What happens after a car is scrapped?
Once an owner scraps their car, they receive a scrapping certificate. By using the scrapping certificate, one can get a discount of around 5-6% on the purchase of a new vehicle.
5. Tax benefits with car scrapings
Customers holding a scrapping certificate can also benefit from a reduction in road tax of up to 25% on the purchase of new personal vehicles.
6. Tax advantages for the purchase of commercial vehicles
Owners can also benefit from a 15% tax rebate on the purchase of commercial vehicles under the new national auto scrapping policy.
6. Compulsory scrapping of government vehicles
Under the National Automobile Scrapping Policy, the Center has mandated the scrapping of all state-owned four-wheeled vehicles over 15 years old.
7. The registration fees are waived
Customers holding the scrapping certificate could also benefit from an exemption from registration fees when purchasing new vehicles.
8. Creation of an ecosystem for the gradual elimination of unfit and polluting vehicles
The national vehicle scrapping policy should create an ecosystem for the disposal of unsuitable and polluting vehicles in the country in an environmentally friendly and safe manner.
9. National car scrapping policy to attract investment
The Minister of Road Transport and Highways, Nitin Gadkari, had earlier announced that the national auto scrapping policy is expected to result in investments worth more than INR 10,000 crore. Also Read: 2021 Royal Enfield Classic 350 Release Date: Check Bike Specs, Features & Price Before Booking
10. 50,000 jobs will be created
In March, Gadkari said the policy would help India create more than 50,000 jobs in the country, with the massive flow of investment in India. To read also: Incredible! Indian rupee was used in Pakistan after independence for a year