NEW DELHI: Union minister
on Thursday announced the much awaited
vehicle scrappage policy
in Lok Sabha.
"We have issued an advisory to all vehicle manufacturers to offer 5 per cent discount while selling a new vehicle against a scrapping certificate," the minister said.
Stating it to be a win-win policy for scrapping old vehicles, the transport minister said that recycling will reduce cost of components for the automobile industry.
States can also offer discount on registration and road tax for buying new vehicles against the scrapped one, he added.
Gadkari also emphasised that work is underway to introduce schemes that will make India the world's largest automobile hub in the next 5 years.
On implementation of FASTag, the minister informed that the existing toll collection system will be scrapped in a year and FASTag will be implemented completely.
While presenting the budget for 2021-22 in Parliament, Sitharaman had said that under voluntary vehicle scrapping policy, personal vehicles would undergo a fitness test after 20 years while commercial vehicles would require it after completion of 15 years.
"Vehicles would undergo fitness tests in automated fitness centres after 20 years in case of personal vehicles, and after 15 years in case of commercial vehicles. Details of the scheme will be separately shared by the ministry," the finance minister had said.