In the Budget 2021-22, it was announced to bring a scrap policy to remove old vehicles from the roads. Under this policy, 20 years old private vehicles and 15 year old commercial vehicles will undergo fitness test every year. If the test fails, the car will be sent in scrap. Registration and renewal fees of old vehicles will also be two to three times higher. The scrap policy will come into effect from 1 April 2022.
About 2.80 crore vehicles will be covered under scrap policy
The main objective of the scrap policy is to give relief to the auto sector. You will have to sell your old vehicle to the scrap center, from where a certificate will be obtained. With this certificate, the car registration of new car buyers will be done for free. According to an estimate, about 2.80 crore vehicles will be covered under the scrap policy.
Vehicle manufacturing cost will be reduced
Five scrap centers will be built across the country. Raw material will be available for recycling from there. This is likely to reduce the cost of making the vehicle, as the policy will make the recycling raw material easily and cheaply available. Also, custom duty on steel has been reduced. In such a situation, the cost of production will be lower for companies. With this, they will reduce the prices of trains. Incentives will also be made available to vehicle owners of Bharat Stage -VI standard.
GST can get up to 100% off
There is a possibility of 50 to 100% discount in GST on the purchase of new vehicle instead of the vehicle which will go into scrap. However, the final decision will be taken by the GST Council. The vehicle owner will buy a new car after the experts go into the scrap of old vehicles. With this, the Center and the states will get Rs 38,300 crore from GST.
According to a report, savings of 9550 crore rupees are estimated from the removal of old vehicles and new ones. One will save fuel of 2400 crores. Second, the vehicle consists of 50 to 55 percent steel. About 6,550 crore rupees of steel scrap will be obtained from old vehicles, and will not have to be imported.
Vehicle junk policy will be made
Now 20 more commercial vehicles and commercial vehicles will not be able to hit the roads after 15 years. This is positive news for the auto sector. However, this policy will be voluntary. The automobile sector will gain momentum as demand for new vehicles increases. Older vehicles will reduce air pollution by 25 percent. At the same time, large scale employment will be available at scrap centers.
7 million passenger trains were registered in 2001
Statistics show that in 2001, 7 million passenger vehicles were registered, while in 2005, 11 million commercial vehicles were registered. That means, so many vehicles will immediately go off the road. Then every year on the basis of registered ratio, these vehicles will be removed. This will help the auto sector immensely. Their sales will accelerate. This will also increase sales of auto sector goods.
34 lakh light vehicles 15 years old
According to Union Minister Nitin Gadkari, there are 34 lakh such light vehicles (LMVs) in the country which are 15 years old. That is, they will have to be removed from the road after 5 years. 51 lakh light vehicles are more than 20 years old. 17 lakh medium and heavy commercial vehicles are 15 years old with no valid fitness certificates.
Will get 50 thousand new jobs
Nitin Gadkari said that it will invest 10 thousand crores and will bring 50 thousand new jobs. All the world’s auto brands are present in India. With this policy, the economy of the country’s auto sector will increase from Rs 4 lakh crore to 6 lakh crore.
Last year a total of 2.15 crore vehicles were sold
The Indian automotive market has been down 18% in FY 2020. In 2020, a total of 2.15 crore vehicles were sold. It had 7.17 lakh commercial vehicles. That is, there was a decline of 29%. The market for three-wheelers declined by 29% to 6.36 lakh. Similarly, the market for passenger cars and two-wheelers has also declined.
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