New Vehicle Scarp Policy






Union Road Transport and Highways Minister Nitin Gadkari said that under the new junk policy, automated test centers for fitness testing of old vehicles would be built on Public Private Partnership (PPP) mode. The central government will help states and private companies for this.

He said that failure to check the automated fitness testing center would result in heavy fines for driving the vehicle. This policy will make the automobile industry the most profitable sector. This will take the Indian auto industry to a new height, which will create large-scale employment generation in the region.

This will help the automobile industry to overcome the adverse effects of the Covid-19 epidemic. Under the Voluntary Vehicle Junk Policy, there will be a fitness test for personal or private vehicles in 20 years and commercial vehicles in 15 years.

Gadkari said that this will increase the turnover of the Indian automobile industry by 30 percent to Rs 10 lakh crore in the coming years. He said that presently in Indian vehicles the annual turnover of the industry is 4.5 lakh crores which will increase to 10 lakh crores in the next few years. India will become a major center of the auto industry.

He said that an old car causes a loss of Rs 1.8 lakh crore in five years. At the same time, a heavy vehicle causes a loss of eight lakh rupees in three years.

Why was there a need for a new policy?

Gadkari said that about 51 lakh light motor vehicles in the country are more than 20 years old and 34 lakh light motor vehicle are more than 15 years old. Vehicle junk policy will help in removing these vehicles from the road. This will increase sales of new vehicles which will give a boost to the automobile industry. It is estimated that the fitness certificate fees for commercial vehicles older than 15 years will increase from the current Rs 200 to Rs 7500 for the cab.

Gadkari said that with the implementation of the new vehicle junk policy, investment of 10 thousand crore rupees will come in the auto industry. This will generate about 50 thousand new jobs. Older vehicles cause 10-12 times pollution.

According to him, with the implementation of the vehicle scrap policy, automobile passes will be up to 40 percent cheaper. This will happen because after the implementation of the scrap policy, steel, plastic, rakhar etc. products are available cheaply and this will reduce the cost.

Gadkari said that at present the cost of importing crude oil is eight lakh crores. It is expected to increase to Rs 18 lakh crore in the coming year. The new policy will help reduce oil imports.

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