Vehicle Scrappage Policy launched by PM Modi: Here’s a take a look at its key options

Prime Minister Narendra Modi launched the much-awaited automobile scrappage coverage as we speak. He stated that the brand new coverage will assist in phasing out the unfit and polluting autos throughout the nation and promote a round economic system.
Urging the youth and start-ups to affix this program, the prime minister stated the coverage will present a brand new id to the mobility and auto sector in India.
Modi stated that the automobile scrappage coverage will present a brand new id to the mobility and auto sector in India and it’ll play a significant function in modernising the vehicular inhabitants on our metropolis roads and also will assist in lowering air pollution within the cities.

Here’s a take a look at the important thing options of the brand new coverage:
-When an previous automobile is scrapped, the proprietor of such automobile will obtain the scrap worth given by the scrapping centre, which is round 4-6 per cent of the ex-showroom value of the brand new automobile they purchase.
-The scheme will present incentives to the homeowners of the previous autos to scrap their unfit autos via registered scrapping centres, which shall present the homeowners with a scrapping certificates.
-The coverage advises vehicle producers to supply a reduction of 5 per cent on the acquisition of a brand new automobile in opposition to the scrapping certificates.
-The new coverage additionally advises providing a road-tax rebate of as much as 25 per cent for private autos and as much as 15 per cent for business autos.
-The new automobile scrappage coverage proposes Private Vehicles to be de-registered after 20 years if discovered unfit or in case of a failure to resume registration certificates. As a disincentive measure, elevated re-registration charges will likely be relevant for personal autos 15 years onwards from the date of preliminary registration. For business autos, the de-registration course of begins after 15 years in case of failure to get the health certificates.
– In addition, the registration charges may be waived for the acquisition of a brand new automobile in opposition to the scrapping certificates.

– Mandatory health testing of economic autos is prone to begin from April 1, 2023, whereas for private autos it’s anticipated to start from June 1, 2024, in a phased method.
The Ministry of Road Transport and Highways (MoRTH) earlier this yr had additionally launched a draft notification proposing a hike within the renewal charges of the RC of 15-year-old autos.