The Vehicle scrappage policy which was much awaited has finally been announced in the Budget 2021 delivered by Finance Minister Nirmala Sitharaman. As the voluntary policy was outlined, details of the scheme are likely to be announced by the Ministry of Road Transport and Highways in the coming weeks.
With the introduction of this policy, the government hopes to phase out older, inefficient and polluting vehicles and in turn promote the use of more environment-friendly vehicles. This scheme will apply to private vehicles above the age of 20 years and commercial vehicles above the age of 15 years.
“We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This 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.
“Vehicles would undergo fitness tests in automated fitness centres after 20 years in case of personal vehicles and after 15 years in case of commercial vehicles. The details of the scheme will be separately shared by the Ministry (Ministry of Road Transport and Highways),” she said.
According to a previous statement by the Ministry of Road Transport and Highways the policy is likely to be brought into effect from 1st April 2021. At the time MoRTH had said that the new policy would invigorate the automotive sector, making India a vehicle manufacturing hub while reducing the price of vehicles on sale in India.
Apart from the EV sector, some key highlights for the renewable energy sector are as follows:
- Duties on imported solar inverters increased from 5% to 20% and on solar lanterns from 5% to 15% to support domestic manufacturing in the solar sector.
- Allocation of Rs 1000 Crore to SECI
- Rs 1500 Crore allotted to IREDA
- National Hydrogen Mission to be launched for hydrogen generation from Green Power Sources
