Video PlayerClose
NEW DELHI, Feb. 1 (Xinhua) -- The Indian government has decided to introduce a vehicle scrapping policy in a bid to phase out the old and unfit vehicles which would subsequently help in reducing vehicular pollution.
Announcing the Budgetary proposals for the financial year 2021-22, the country's Finance Minister Nirmala Sitharaman said that the new policy would help in encouraging fuel efficient, environment friendly vehicles, thereby reducing the oil import bill.
"We are announcing a voluntary vehicle scrapping policy, to phase out old and unfit vehicles. This will help in encouraging fuel efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill. 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," said the finance minister.
Meanwhile, details of the scrapping policy will be separately shared by the Ministry of Road Transport and Highways within two weeks.
Minister of Road Transport and Highways Nitin Gadkari welcomed the Voluntary Scrappage Policy, saying that it will lead to new investment of around 10,000 crore Indian Rupees (1.36 billion U.S. dollars), besides creating as many as 50,000 jobs.
The minister said that the policy would cover an estimated 5.1 million light motor vehicles (LMVs) that are more than 20 years old, while another 3.4 million LMVs that are over 15 years old.
It would also cover 1.7 million medium and heavy motor vehicles, which are over 15 years old, and currently running without valid fitness certificates.
"These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles," said Gadkari, adding that it would lead to recycling of waste metal, improved safety, reduction in air pollution, reduction in oil imports due to greater fuel efficiency of current vehicles, and stimulate investment. Enditem