Finance Minister announces Voluntary Vehicle Scrapping policy

On Monday, Finance Minister, Nirmala Sitharaman, presented our country’s first paperless financial budget for the year 2021-22. She subsequently announced the Voluntary Vehicle Scrapping policy. Stating details of the policy, the Finance Minister said that personal vehicles over 20 years of use and commercial vehicles over 15 years of use must undergo fitness tests.

The Voluntary Vehicle Scrapping policy is reportedly intended to curb the fast-growing issue of vehicular pollution, by phasing out old and pollution causing motor vehicles. According to the Finance Minister, this policy will promote the use of more fuel-efficient vehicles and make a positive impact on the import rates in the country.

This policy comes to light after the 2019 discussion on the same, which had promotions of the use of electric vehicles as its agenda. Now that the policy is in place, officials predict India to become an automobile hub with the scrap material from the used vehicles recycled, also reducing the prices of motor vehicles in the country. To recall, Union Minister of Road Transport and Highways, Nitin Gadkari announced that under the Green Tax amendment, vehicles owned by Government and PSUs will be sent to scrap after 15 years of use, which will come into effect from 1st April 2022.

Another significant announcement, among others, in this year’s budget, would be the raise of the ‘Health and Wellness’ budget by 137% compared to last year. India is to spend Rs. 64,180 crore on health infrastructure spanned over a period of 6 years with an overall annual budget of Rs. 2.83 trillion, informed the Finance Minister.