Vehicle Scrappage Policy – UPSC Prelims

Aim of the Policy: Scrappage policy will encourage fuel-efficient, environment-friendly vehicles on the road. Thereby it will reduce vehicular pollution and the oil import bill.
Key Features :
  • Under the policy, vehicles would undergo fitness tests after a certain period of time. In the case of personal vehicles,  the duration is 20 years. In the case of commercial vehicles, this duration is 15 years.
  • Each fitness test will cost approximately Rs 40,000. Other than that, old vehicles will have to pay green tax and road tax.
  • If a vehicle fails a fitness test, it will not get a renewal certificate and won’t be able to run on the road.
  • However, if it passes a fitness test, the vehicle will have to undergo a fitness test, after every 5 years.
  • The aim of all these costs is to discourage consumers from keeping the older vehicle.
  • The incentives for vehicle scrappage not announced yet.
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