Prime Minister Narendra Modi on Friday spear the long-awaited national auto scrapping policy, describing it as an “important step towards Aatmabirbhar Bharat”. The policy, which Prime Minister Modi launched as he virtually addressed the investor summit in Gujarat, was announced by Union Finance Minister Nirmala Sitharaman in her budget speech in February.
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(1.) The policy recommends “aptitude tests” for private and commercial vehicles over the age of 20 and 15, respectively. In the absence of a “certificate of aptitude”, the registration of these vehicles will be automatically canceled.
(2.) It further recommends mandatory scrapping of all government vehicles that are over 15 years old, but only applies to four-wheeled vehicles.
(3.) Fitness tests will be performed at government approved fitness centers, for which appointments can be made online. The test reports will be generated in online mode. In addition, scrapping can be done anywhere in the country, regardless of where the vehicle is registered.
(4.) The scheme also offers several incentives that homeowners can avail themselves of after obtaining a tear-up certificate. This includes the scrap value of the old vehicle, which is expected to be around 5-6% of the price of a new vehicle.
(5.) In addition, a reduction in the road tax of up to 25% for new personal vehicles and 15% for new commercial vehicles, as well as a reduction of 5% on the registration certificate. breakage, have also been proposed as part of the policy.
(6.) The registration fees for the purchase of a new vehicle can also be waived when the old vehicle is scrapped.
(7.) The policy will provide investments worth more than ??10,000 crore and create up to 50,000 jobs, Union Transport Minister Nitin Gadkari said when details of the policy were announced in March.