Business Standard

Scrappage plan has sops for buying new vehicles, pain for driving old ones

Policy will increase business, employment and reduce pollution, says transport minister

automobile, scrappage, cars, auto, vehicles

Automakers count on the new policy to boost sales that crashed when the coronavirus pandemic pulled down India’s economy.

Arindam Majumder New Delhi
The Centre on Thursday announced the much-awaited vehicle scrapping policy, seeking to “increase business and employment, and reduce pollution and road hazards created by old vehicles”.  

Through this policy, the government is looking to incentivise scrapping vehicles older than 15 years and replacing them with new ones, while discouraging the use of old vehicles. “The scheme targets multiple problems at one go,” Nitin Gadkari, minister of road transport and highways, said, making a statement on the policy in the Lok Sabha.

The road ministry has proposed to cut goods and services tax (GST) and road tax on new vehicles. State governments will

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First Published: Mar 18 2021 | 8:52 PM IST

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