Union Finance Minister Nirmala Sitharaman proposed a voluntary vehicle scrapping policy to phase out old and unfit vehicles in the Union Budget 2021.
The term is 20 years for private vehicles and 15 years for commercial vehicles. Such vehicles will then be inspected at automated fitness centers. The government hopes that the new policy will reduce air pollution.
Promoting fuel-efficient and eco-friendly vehicles will help reduce pollution and oil imports.
With the new policy being implemented, it is estimated that the demand for new vehicles will increase and business opportunities worth Rs 43,000 Crore will be created. It is also expected that recyclable raw materials will be available through the scrap policy. This will reduce the cost of vehicles by 30 per cent.
A recent study by the Bombay IIT found that 70 per cent of air pollution is emitted from vehicles.