VEHICLE SCRAPPING POLICY 2021 - EXPLAINED

Vehicle scrappage programs have been around since the global recession that began in the year 2008. Governments in association with vehicle manufacturers from across the globe have been implementing car scrapping policy to ensure an increase in sales of new vehicles as well as the removal of inefficient vehicles from the roads.

India in this view is working on a vehicle scrapping draft policy for the past 4 years. Given the drastic downfall in the automobile sector, this year along with rising emission levels from old near-scrap vehicles has called for immediate implementation of the scrappage policy at the latest.

WHAT IS VEHICLE SCRAPPING POLICY?? 

To curb pollution and battle the slowdown in the automobile sector, the Government of India has proposed and funded a car scrapping policy. This policy aims at replacing old vehicles from Indian roads. Once a vehicle's registration certificate expires beyond its operational limit, a user can go to any government-authorised scrapping centre and surrender the vehicle.

WHAT ARE THE BENEFITS OF VEHICLE SCRAPPING POLICY IN INDIA??

A vehicle scrapping policy implementation in India will have many positive outcomes:

• First and foremost benefit is cleaner air. As inefficient vehicles will be taken off the roads, the air pollution levels will decrease.

• Vehicle scrapping will ensure removal of old vehicles and an increase in sales of new vehicles in India.

• With the increased sale of new vehicles with advanced safety features, commuting on Indian roads will become a lot safer.

• The government is setting up authorised vehicle scrapping facilities, this will in-turn generate huge employment opportunities in India.

• Vehicle scrapping will be a major breakthrough for the raw and precious metal recycling industry in India.

The Society of Automobile Manufacturing (SIAM) has recommended the government to provide incentives in any possible form to the car owners who decide to scrap their 15-year old vehicle.