Scrappage policy for private vehicles and CVs announced

As per the scrappage scheme, personal vehicles will have to undergo a fitness test after 20 years.

The Government of India has announced the Voluntary Vehicle Scrappage Policy for private and commercial vehicles. The announcement was made by the Finance Minister during her 2021 Union Budget speech in the Parliament today.

As per the scheme, personal vehicles will have to undergo a fitness test after 20 years, while commercial vehicles will have to undergo the same test after 15 years. The tests will be conducted at government-appointed automated vehicle fitness centres. These vehicles will be eligible to be scrapped.

Details of the scrappage policy will announced at a later date. The scheme is expected to reduce pollution, while also creating demand for new vehicles.

Last month, the Minister for Road Transport and Highways had approved a scrappage scheme for vehicles owned by the government departments and public sector units (PSUs).