The Union Minister for Road Transport and Highways Nitin Gadkari approved the policy of scrapping of Government department and PSU vehicles older than 15-years. This will be effective from April 1, 2022.
In a statement issued by MoRTH, it was so mentioned -“The Minister approved the policy of deregistration and scrapping of vehicles owned by the Government department and PSU, which are above 15 years in age. It is to be notified, and will come into effect from 1st April, 2022”.
The auto industry which has been severely hit by the pandemic will receive demand stimulus with this policy. Apart from that, it will help in curbing pollution.
The auto industry has been awaiting this policy since July 26, 2019, when the government proposed amendments to the Motor Vehicle Act to allow scrapping of vehicles older than 15 years in a bid to speed up the adoption of electric vehicles.
The notification had also stated that the newly purchased vehicles will be exempted for the payment of fees for a registration certificate and assignment of the new registration mark, only upon scrapping the old vehicle in the same category.
Mr. Gadkari also added once the policy is approved, India will become an automobile hub and there will also be a reduction in the prices of automobiles. He had previously also said that the automobile industry’s turnover will get a boost which is around ₹ 4.5 lakh crore with over 1.45 lakh crore of exports.
