Further to the earlier announcement of a scrappage scheme for Government vehicles, Finance Minister Nirmala Sitharaman announced today at the Union Budget 2021 a scrappage scheme for private and commercial vehicles too.
- Voluntary Vehicle Scrappage Policy announced for private and commercial vehicles.
- Private vehicles older than 20 years and commercial vehicles older than 15 years to undergo fitness tests.
- Vehicle fitness tests to be conducted at automated fitness centers.
Under the scheme private vehicles older than 15 years and commercial vehicles older than 20 years will be eligible to be scrapped. The Finance Minister said the details of the scrappage scheme will shared by the ministry soon.
It is understood that both private vehicles and commercial vehicles over 20 and 15 years will have to undergo a fitness test at government-appointed automated vehicle fitness centers.
Further to the announcement auto stocks of many manufacturers such as Mahindra and Mahindra, Maruti Suzuki and Tata Motors gained on the stock market.