Recently Union Minister for Road Transport and Highways Nitin Gadkari in the Lok Sabha elaborated on new vehicle scrappage policy. The policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles would require it after the completion of 15 years. If found unfit the process of deregistration will follow and subsequently vehicles will be scrapped.
The benefits of Scrap policy
1) It will reduce the expenditure on the operation of vehicles in the next two years by ten times and also help in controlling pollution.
2) It will help reduce the dependence on petrol, diesel imports and promote electronic vehicles.
3)The maintenance cost of a new vehicle manufactured from the scrap will also be less.
4)For scraping, you will have to show the RC of the car and your Aadhaar card to the dealer.
5)Materials such as plastics, steel and copper can be reused after recycling.
6)India expects the automobile sector to be worth Rs 10 lakh crore in the next 5 years on the basis of this policy.
7)When people scrap old vehicles and purchase the new ones, The government is expected to fetch a GST of around 40 thousand crores annually.
8)The policy will provide benefits to scrapping centers, the automobile industry, the component industry and the common man.
9)Scraping off old vehicles will also boost sales in the automobile sector.
10)The registration fee will be waived off at the time of registration of the new vehicle.