Budget 2021 : Automobile Sector – UPSC GS3

Vehicle Scrappage Policy:
  • Vehicle scrappage policy aims to phase out old and unfit vehicles.
  • Vehicles would undergo fitness tests after 20 years in automated fitness centres in the case of personal vehicles (PV), and after 15 years in the case of commercial vehicles (CV).
  • Significance:
    • The policy would help in encouraging fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and the oil import bill.
    • The policy would provide an impetus to the automobile sector and the economy at large.
    • It will set in motion a circular economy with the subsequent economic and social benefits.
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