Scrap Policy: Know Everything About The Government's New Policy And Its Impact

Cities like Delhi, Kanpur and Mumbai have a high pollution rate. Old vehicles are a major source of this pollution. This scrap policy would help reduce pollution by scrapping old vehicles.

Scrap Policy

The scrap policy was announced in the Parliament a few months ago and a discussion on how it will boost India's auto sector was also done. The automotive industry has suffered a lot as part of COVID-19 restrictions; the government intends to strengthen this sector again. Union Minister Nitin Gadkari had told that with the help of this scrap policy, automotive sector might see a growth of up to 30 percent. This policy will be implemented from April next year. Let us know what is this policy is and why was it needed, along with its benefits.  

What is this scrap policy?
Under this new scrap policy, 15 and 20 year old vehicles will be scrapped. While a commercial vehicle can be declared junk after 15 years, a private vehicle can be declared junk after 20 years. In simple terms, your 20-year-old personal car will be sold in scrap. Vehicle owners will have to take them to the Automated Fitness Center after the stipulated time. The government claims that the scrapping policy will not only reduce the financial loss of the vehicle owners, but will also protect their lives. There will also be a reduction in road accidents.

Cars need to undergo a fitness test
The government says cities like Delhi, Kanpur and Mumbai have a high pollution rate. Old vehicles cause more pollution. Elimination of old vehicles will reduce air pollution in cities. Automated fitness centers will open across the country, where fitness test for 15 to 20 year old vehicles would be mandatory. Operation of such fitness centers will be privatised. However, the government will monitor these centers.

Government to spend Rs. 20 billion in five years
During the budget speech, Finance Minister Nirmala Sitharaman had discussed setting up of automated fitness centers to curb pollution. Vehicle owners will have to take private vehicles to these centers after 20 years. This new scrap policy will directly impact middle and lower classes. If your car turns old, it will be scrapped as junk.

Old cars must be taken to fitness centers
According to the government, the new scrap policy will help control pollution. The government is taking air pollution very seriously. In the next five years, the government will spend Rs 2000 crore on curbing air pollution. In the budget session, the Finance Minister has announced a plan to rapidly build automated fitness centers across the country. Under this policy, private vehicles will have to be taken to these automated fitness centers after 20 years. At the same time, commercial vehicles will have to be taken to these centers after 15 years, where they will be scrapped.

Why was there a need to introduce a new scrapping policy?
In response to this question, Giridhar Armane, a 1988 batch senior IAS officer from the Andhra Pradesh cadre and Secretary in the Transport Ministry, enumerated many benefits. He said, "According to one figure, a person suffers a loss of 30 to 40 thousand rupees every year while driving a used car, and a truck owner loses two to three lakh rupees annually while driving a used truck. This economic loss will be reduced under this new scrapping policy. At present, 5 to 6 million old vehicles are registered in the country. Some have already been scrapped. Keeping aside sales due to this scrapping policy, only 1.5 to 2 million new vehicles will be sold in the next four years. I don't see this as a big benefit to the auto industry. "

This is why old vehicles are dangerous
The secretary of the Ministry of Road Transport and Highways cited safety as the second major reason behind the introduction of the new scrapping policy, saying that vehicles that are 15 to 20 years old do not have seat belts or airbags etc., due to which traveling in such vehicles is fatal. New vehicles follow safety standards far more closely. The rate of head injuries in accidents caused by new vehicles is also low. Thus the purpose of this scrapping policy is to motivate people to buy new vehicles by scrapping 15 to 20 years old vehicles and also motivating states to levy green tax on old vehicles.