Union Budget 2021 / Govt to launch voluntary vehicle scrappage policy: Finance Minister

Finance Minister Nirmala Sitharaman during the Budget speech on Monday said the government will launch a voluntary vehicle scrappage policy to phase out old vehicles to reduce pollution and cut oil import bill. "Vehicles would undergo fitness tests after 20 years in case of personal vehicles and after 15 years for commercial vehicles," she added.

Vikrant Shekhawat : Feb 01, 2021, 11:50 AM
New Delhi: Finance Minister Nirmala Sitharaman today in Budget 2021 announced a vehicle scrappage policy, pushing Nifty auto index 1% higher.

The finance minister said a details of a voluntary vehicle scrapping policy will be announced soon to phase out old vehicles.

For personal vehicles, automobiles will undergo fitness tests after 20 years and for commercial vehicles after 15 years.

The finance minister said Budget 2021 proposals rest on six pillars: Health and Well-Being, Physical and Financial capital and infrastructure; Inclusive Development for Aspirational India; Reinvigorating Human Capital Innovation and R&D, Minimum Govt., Maximum Governance.

Among the auto stocks, M&M, Tata Motors, Maruti and M&M were up over 1% each.

Transport and Highways minister Nitin Gadkari had earlier said that a vehicle scrappage policy will give a major push to automobile manufacturing industry in the country.