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Vehicle Scrappage Policy 

Part of: GS Prelims 

In news: Prime Minister Narendra Modi launched the Vehicle Scrappage Policy in India on Friday, 13 August, at the Gujarat Investor Summit and requested youths and start-ups to join the programme.

What is the policy?

• Personal vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo a fitness test at government registered ‘automated fitness centres’.
• Vehicles that fail to pass the test will be declared as ‘end-of-life vehicles’ meaning that they would have to be recycled. Thus, paving the way for older vehicles to be scrapped. 
• In case, the vehicles pass the test, the owners will have to pay a hefty fee for re-registration that would be hiked to around eight times for personal vehicles, and around 20 times for commercial vehicles.
• The policy is a “waste-to-wealth mission and an important part of the circular economy that will reduce pollution in our cities and also reflect the government’s commitment towards rapid development. 
• The policy will also bring investments worth more than Rs 10,000 crore and, in the process, create employment opportunities for thousands of youngsters.

News Source:  PIB

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