Efforts to boost auto industry: Budget announcement of vehicle scrap policy; What is the new vehicle scrap policy of Modi government, what will benefit the common man

Efforts to boost auto industry: Budget announcement of vehicle scrap policy; What is the new vehicle scrap policy of Modi government, what will benefit the common man

Finance Minister Nirmala Sitharaman has announced to scrap old cars in the general budget for the year 2021-22, which will control pollution. Oil import bills will also be reduced

Finance Minister Nirmala Sitharaman has announced to scrap old cars in the general budget for the year 2021-22, which will control pollution. Oil import bills will also be reduced. An automated fitness center will be built. Privately owned cars will have to move to the center after 20 years. The finance minister said personal vehicles would have to be sent to automated fitness centers after 20 years and commercial vehicles after 15 years.

The Narendra Modi government at the Center is preparing to launch a scrap policy for the auto sector from next month. The main purpose of this policy is to provide relief to the auto sector. Under this policy you will have to sell your old car to a scrap center. After which you will get a certificate. Seeing this, car registration of new car buyers will be done free of cost. The decision is expected to cover about 2.80 crore vehicle scrap policy. At the same time, it will become a major scrap center in the country. Which is expected to create a large number of new employment opportunities. At the same time, the automobile sector will be able to get cheap parts like steel, aluminum and plastic in recycling.

In September last year, the Automotive Component Manufacturers Association of India told Union Minister Nitin Gadkari at its annual session that the scrap policy was in its final stages. This has been announced in the general budget.

What is the scrap policy of Modi government

According to media reports, the central government is introducing a scrap policy to remove 15-year-old vehicles from the roads. It aims to promote 15 year old trains. It is proposed to levy a lot of tax on re-registration of vehicles.

What can happen if you don't give an old car

The scrapage policy proposes to charge a fee of up to Rs 15,000 for re-registration of an old car. Not only this, it is proposed to renew the fitness certificate for commercial vehicles every 6 months and also to increase the fitness certificate fee many times.

Can the common man benefit

Experts say that after the implementation of the auto scrapage policy, if a person buys a car and it is priced at Rs 10 lakh, there is talk of giving a discount of around Rs 3 lakh at 30 per cent on the car. That's because new cars reduce pollution. At the same time, the auto industry will also get support from it. The automobile sector is also endorsing the auto scrap policy.

What's the benefit of a new policy?

According to reports, the scrap policy will be implemented soon after the cabinet passes it. In times of epidemics, the scrapage policy will work like a lifeline for the economy.

According to experts, GST of 50 to 100% is likely to be available on the purchase of a new vehicle instead of a vehicle that will go into scrap. However, the final decision on this will be taken by the GST Council. The new policy is expected to fetch the government Rs 9,600 crore from GST and Rs 4,900 crore in the next five years. According to experts, after the old vehicle goes into scrap, the vehicle owner will buy a new vehicle, which will benefit the Center and the states to the tune of Rs 38,300 crore from GST.

According to a report, the removal of old vehicles and the arrival of new ones is expected to save Rs 9,550 crore. It will save Rs 2,400 crore from next year. Steel accounts for 50 to 55 percent of a vehicle. The scrap from these vehicles will fetch about Rs 6,550 crore worth of steel scrap and not so much scrap has to be procured from abroad.

Steel scrap worth Rs 1,500 crore will be found in the next one year alone. Currently there are no organized units to extract steel in the scrap market. At the same time it has been observed that engines are removed from vehicles in the wreckage and used to make bogus vehicles.

What will happen to your old car?

The scrapage policy removes the provision to remove 15-year-old vehicles from the road. But to drive such vehicles, it is necessary to get a fitness certificate every year. At the same time, the registration renewal fee has been increased two to three times. Which will attract the vehicle owner to sell the old car and buy a new car.

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