Scrappage Scheme 2022″Budget 2022 Vehicle Scrappage Policy

vehicle scrappage policy india 2022:vehicle scrappage policy 2022:Scrappage Scheme

The government has introduced a new scheme named the vehicle scrapping Scheme. Finance minister Mrs. Nirmala sitharaman has declared today when presenting the 2022-22 budget session.The vehicle scrappage policy has been brought 43,000 crore business opportunities in the auto industry and assisting the environment.Mrs. Nirmala sitharaman told that they are separately announcing a voluntary vehicle scrapping policy 2022 for finding out old and unfit vehicles.This scheme will assist fuel-efficient and environment-friendly vehicles to reduce vehicular pollution and oil import bills.

The aim of this scheme is to boost the sales of new vehicles.During the covid-19 pandemic, the automobile industry of India has been worse affected. New vehicle sales have been slowed for the severe pandemic condition.Union Budget 2022 and announced a sharp rise in capital expenditure for the next fiscal year to Rs 5.54 lakh crore, from Rs 4.39 lakh crore in 2020-21. Among other reforms and new policies, Nirmala Sitharaman also announced that the government is intended to bring a voluntary vehicle scrappage policy.

Scrappage Scheme 2022

However, the vehicle scrappage policy is known as a voluntary scheme which has become mandatory as a fitness certificate. With the lack of proper infrastructure,a fitness certificate is not good enough for this policy, Mr. Rajeev Singh stated.Moreover, the government has increased the import duty on electrical,electronic, and engine parts from 7.5 % to 15%. On the other hand, there are several components such as vehicle frames, braking, systems, steering wheels,etc.

However, it will see a jump to 15% from the existing 10 plus in creating vehicles with high import content.Finance Minister Mrs. Nirmala sitharaman will invest the capital of 5.54 trillion for improving infrastructure. This vehicle scrappage policy will boost the demand for heavy and medium commercial vehicles.Even the central government will expend Rs.18, 000 crore to develop public transport in the cities and procure 20,000 buses in the upcoming years.

vehicle scrappage policy Key Highlights:-

  • Mrs. Nirmala Sitharaman has given a nutshell Idea regarding how the policy will work.
  • In case of personal vehicles, new Vehicles will undergo fitness tests in fitness centers after 20 years and after 15 years for commercial vehicles.
  • This policy main objective is to take out the old polluting vehicles from the roadside in India. Old vehicles& resale value has been reduced and thus the vehicles will pollute the air on a large scale.
  • You can send the vehicle Details to scrap yards and it will be offered to the owners for monetary compensation, which will assist the owners to purchase new vehicles respectively.
  • This vehicle scrappage Scheme is also known as a voluntary Scheme.
  • The ministry of road transport and highway has outlined the scheme Details.We do expect that this vehicle scrappage policy will give monetary assistance to the vehicle owner. On the other hand, the vehicles are polluting the environment and these have become unfit to run.

vehicle scrappage policy 2022 Benefits:-

  • However, monetary assistance will be available on the purchase of your new vehicles. Any vehicle owner can apply for a private vehicle that is age above 20 years.
  • She said that the Ministry of Road Transport and Highways will separately share the scheme Details. The ministry of road transport and highways has given a previous statement policy which will bring into effect from 1 April 2022.
  • Though Mr. Nitin Gadkari has not yet shared about the incentives he said that the entire policy will be distributed to take old polluting vehicles off the road and also develop sales of new vehicles that are not polluting.

Scrappage Scheme Conclusion:

This vehicle scrappage Scheme will help the automobile industry and it will deliver Employment opportunities for youth in the country. In other words, this scheme will make mobility in the cities. On the other hand, it is more convenient than others. Even, this scheme will help to increase sales in 2019. SIAM has applied to the Government to keep the new norms for 18 months BS-VI. It is required to recoup the investment.

Features of Vehicle Scrappage Policy

  •  Customers will get scrap value for the old vehicle from the scrapping centre, which is approximately 4-6 per cent of a new vehicle’s ex-showroom price.
  • The state governments may be advised to offer a road tax rebate of up to 25% for personal vehicles. For commercial vehicles, the tax rebate will is 15%.
  • It has also been advised to the vehicle manufacturers that providing a discount of 5% on the purchase of new vehicles against scrapping certificate.
  • An additional levy of Green Tax on old vehicles by states.
  • Scrapping Centers are not allowed to scrapping stolen ones.

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