Vehicle Scrappage Scheme | Scrape Policy 2021, Features, Benefits, Notification PDF

Complete Details about Car Scrappage Scheme and Car Scrape Scheme Budget 2021

In a recent move, the Union Finance Minister has announced the Vehicle Scrappage Scheme in the Union budget meeting. The main objective of the Vehicle Scrappage Scheme is to discard the old vehicles across the nation. The scheme is applicable for 20 Years Old Private Vehicles and 15 Years Old Commercial Vehicles. The scheme will be monitored by the Ministry of Road Transport and Highways. Moreover, the scheme is more likely to be a voluntary scheme for the citizens. Announcing this scheme, Mrs. Nirmala Sithraman has claimed that the project will remove the scrapped vehicles and protects the environment from air pollution.

Please do visit our article : Union Budget 2021

The interested citizens can go through this article to get more information and complete details of the Car / Vehicle Scrappage Scheme.

Vehicle Scrappage Scheme 

This article explains the Car Scrappage Scheme, Complete details about the Car Scrape Scheme in the union budget 2021.

“We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This policy will help in encouraging fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and oil import bills,” Finance Minister Nirmala Sitharaman said while presenting the Union Budget 2021-22.

Scrape Scheme Budget 2021 Complete Details

As discussed, the union government has very recently announced the Vehicle Scrape Policy in the Union Budget. Moreover, the government has also given guidelines for the Car Scrape Scheme. Let us see the key features of the Vehicle Scrappage Scheme as follows.

  • The scheme comes under the Vehicle Scrappage Policy for the year 2021-22.
  • Under this scheme, the government will phase out the older, inefficient, and polluting vehicles.
  • Through this scheme, we can successfully discard the cars that were damaged and no longer be useful for running on the roads.
  • This move from the government will also protect the environment from pollution and encourage environmentally-friendly vehicles.
  • The scheme is applicable for private vehicles above 20 years and commercial cars above 15 years.
  • The government will also conduct physical fitness tests on the vehicles and stop them from usage if any malfunctions are in the vehicle.
  • Under this policy, the owners will also receive monetary incentives to discard the old cars and purchase the new vehicle.
  • The following scheme ensures transparency and also reduce corruption.
  • Besides helping the environment, the scheme also aims to develop the automobile industry.
  • Moreover, the government will spend Rupees 18,000 Crore on improving the public transport in cities, and additional 20,000 Buses are coming for public transportation.
  • The Ministry of Road Transport and Highways (MORTH) has set a timeline to discard all vehicles older than 15 years of service by April 2022.
  • Moreover, the MORTH is in plans to levy a Green Tax on cars older than eight years.

Features of Vehicle Scrappage Policy

  •  Customers will get scrap value for the old vehicle from the scrapping centre, which is approximately 4-6 per cent of a new vehicle’s ex-showroom price.
  • The state governments may be advised to offer a road tax rebate of up to 25% for personal vehicles. For commercial vehicles, the tax rebate will is 15%.
  • It has also been advised to the vehicle manufacturers that providing a discount of 5% on the purchase of new vehicles against scrapping certificate.
  • An additional levy of Green Tax on old vehicles by states.
  • Scrapping Centers are not allowed to scrapping stolen ones.

Benefits of Vehicle Scrapping Scheme

  • Through this initiation, we can reduce the pollution in the country to the greater extent.
  • Scrapping the old vehicles will reduce road accidents upto a maximum extent.
  • The Scrappage Policy initiative will reduce vehicular air pollutants, improve vehicle and road safety.
  • Citizens will also avail of the scrap value as a bonus for their old vehicles.

Please visit our latest article : PM Atmanirbhar Swasth Yojana

Scrappage Scheme Notification PDF

Click Here to get directly redirected to the Vehicle Scrappage Scheme launched by the MORTH.

Please Visit Our Article : Odisha State Employment Mission OSEM Registration

To summarise this article, the new Vehicle Scrappage policy will bring many changes in the usage of vehicles. It prevents physically unfit cars to run on the roads. This move will not only protect the environment but also helps to avoid accidents which occur due to several reasons. We will keep you updated about the latest information regarding the Car Scrappage Policy. Please follow our article to get the latest updates on more of the government schemes and welfare programs.

Quick Links 

Ministry of Road Transport Official Website

Ministry of Road Transport & Highways

Transport Bhawan, 1, Parliament Street

New Delhi-110001

Vehicle Scrappage Scheme 2021 FAQ’s

What is the prime objective of the Car / Vehicle Scrappage Scheme 2021?

The Car / Scrappage Scheme’s prime objective is to phase out all the vehicles whose lifetime is above 15 years and protect the environment from pollution.

Which vehicles will come under the recently announced Vehicle scrappage scheme launched by the Union Government of India?

The scheme is applicable for private vehicles above 20 years and commercial cars above 15 years.

Is the government inviting any applications from the citizens for implementation of this scheme?

The Government of India has very recently announced the scheme in the recent budget. Moreover, we don’t have any information regarding the application or registration procedure of the scheme.

Is the new agency policy mandatory for all citizens in the country?

No, as per the information sources, it is not mandatory to follow the new vehicle/card scrappage policy.