Union Minister for MSME and Road Transport & Highways, Nitin Gadkari on Monday approved the vehicle scrappage policy announced in the Union Budget. The policy will be unveiled soon.
According to reports, rules for setting up scrappage centres will be announced first and fitness rules for vehicles will be announced in the second phase.
Union Finance Minister Nirmala Sitharaman had announced the policy in her Budget speech on February 1 to boost the sales of new vehicles.
A vehicle scrappage policy is a programme that helps the replacement of old vehicles with new ones.
Gadkari, in February, had said that the policy would cover over 1 crore light, medium and heavy motor vehicles. “The policy would cover an estimated 51 lakh light motor vehicles (LMVs) that are above 20 years of age, while another 34 lakh LMVs are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates”.
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