Vehicle scrapping policy

Scrappage policy is a government policy to encourage people to recycle their old cars. The government of India announced a scrappage policy in 2008 to reduce pollution.  The government scheme to encourage motorists to replace their cars has led to a boom in demand for used vehicles. However, some people are finding the going tough and are scrapping their existing motor.

Scrappage is a government incentive program, aimed at encouraging motorists to trade in older, less-efficient vehicles for newer, more fuel-efficient ones. Scrappage plans generally involve the buyback of a vehicle over the age of 10 years. This can be used as a cost-effective way to upgrade your fleet or replace old vehicles. Scrappage programs can provide businesses with significant savings and greatly reduce their carbon footprint.

What is Scrappage?

Scrappage is an initiative from the government. Scrappage occurs when governments offer financial incentives to businesses and private individuals to take old vehicles out of service and replace them with new ones. The aim, if you like, is to get all vehicles on the road to be as fuel-efficient as possible. The aim behind the scrappage is to reduce pollution. 

The ministry of road transport and Highway has announced the method for establishing a Registered Vehicle Scrapping Facility (RVSF) under Prime Minister Narendra Modi’s long-awaited vehicle scrapping policy, which was implement last month. Union finance minister Nirmala Sitharaman announced it in her Budget speech in February, while road transport and roads minister Nitin Gadkari revealed the details in March.

Government New Scrapping Policy 2021

It was first mentioned in the Union Budget for the financial years 2021-22. It is expected that the policy will cover 51 lakh light motor vehicles (LMVs) over the age of 20 and another 34 lakh LMVs over the age of 15. India will also implement a toll collecting system based on the Global Positioning System (GPS) and eliminate all toll booths within a year.

Registered Vehicle Scrapping Facility (RVSF) under the vehicle scrapping policy

The ministry of road transport and Highway has announced the method for establishing a Registered Vehicle Scrapping Facility (RVSF) under Prime Minister Narendra Modi’s new vehicle scrapping policy for scrapping business, which was implement last month. Union finance minister Nirmala Sitharaman announced it in her Budget speech in February, while road transport and roads minister Nitin Gadkari revealed the details in March.

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