Union Budget 2021: Introduction of vehicle scrappage scheme will benefit auto sector
Union Budget 2021: Introduction of vehicle scrappage scheme will benefit auto sector
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New Delhi: The country's budget 2021-22 was presented in Parliament today. During this, Union Finance Minister Nirmala Sitharaman commented on the much talked about scrap policy. She said that the government will bring a scrappage policy for old vehicles. Under this, a fitness certificate will be issued to each vehicle, which will be mandatory for everyone to get.

Nirmala Sitharaman announced that a voluntary scrap policy will be introduced in the entire country soon. However, detailed information will be revealed later. Recently the Ministry of Road Transport and Highways approved the policy of sending 15-year-old vehicles to scrap for government vehicles. This decision of the ministry will have to remove 15-year-old vehicles used by the central, state governments, and public sector companies. However, this policy is to be followed from April 2022.

Scrap policy will directly affect the lower class and middle-class people. Because under this rule, private vehicles after 20 years and commercial vehicles after 15 years will have to be taken to an automated fitness center, where they will be scrapped. The government says this will boost employment, as new scrap centers will be opened. At the same time, it will affect the middle class and lower class people because they will have to buy a new vehicle again in 20 years. In such a situation, the life of the vehicle will decrease compared to before. However, the government will provide some subsidies on scrapping old vehicles and the purchase of new vehicles.

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