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Scrappage Policy: Key Takeaways from Nitin Gadkari's Announcement

Shri Nitin Gadkari announced a few highlights of the upcoming Scrappage Policy for Vehicles. With India fighting Pollution Year after Year with SMOG taking over most of the September- November Months in the Capital DELHI, the Scrappage policy is the best thing that Government can offer as a solution. There are some initial highlights of the Scrappage policy which can help you to sort out the future plans for your car, Old or new.


1) Effective dates: The dates from when the Scrappage Policy will come to effect are as below:

     a) Government Vehicles: The Government Vehicles which are above 15 years old will be scrapped from 1st April 2022.

     b) Commercial Vehicles: The commercial vehicles which are more than 15 years old will come under the scrappage policy from 1st April 2023.

     c) Passenger Vehicles: The passenger vehicles which are more than 20 years old will come under the scrappage policy from 1st April 2025.

2) Rebate on scrappage of old vehicle: The old vehicles will have to undergo Fitness test at designated fitness test centres. The vehicles which are termed unfit will have to be scrapped at authorized scrappage centres which will provide certificates for the Vehicle owners. Nitin Gadkari has urged Auto Makers to provide 5% discount on new vehicles for owners producing Scrappage certificate under the scrappage policy.

Rebate on OIld Vehicle Scrapping

3) Rebate on Road Tax: The Road and Transport minister also mentioned that under the scrappage Policy, the owners who scrap their vehicles will be given 25% rebate on the Road Tax for the New Vehicle.

Rebate on Road Tax

4) Cost of running the Old Vehicle: The Commercial and Passenger Vehicles if which are 15 years and 20 years old respectively need to undergo Fitness test. If they pass the testing conditions of the Scrappage Policy, they still need a heavy amount to keep running. This will include heavy Green Tax which will be anything between 10-20% and also the need fresh Insurance for the vehicle.

5) Rebate on Electric Vehicles: The Electric vehicle Industry is on the rise and discounts upto 15% on Registration for the electric vehicles is expected for owners scrapping their vehicle in scrappage policy. Also many new companies are venturing into Electric business such as Ola Electric. They have setup a new plant bringing new aspects as in the link.

As per the current information available on Scrappage Policy, it is inclined towards demotivating the use of Old vehicles on Indian roads by mandating fitness test and heavy taxes on any vehicle that passes it. Therefore it is a good time to decide quickly on your current old vehicle.

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