Image Source: The Indian Express
On 1st of February, the Finance Minister presented the budget for FY22. Several big announcements were made and experts have called it a growth-oriented budget that prioritizes investments over fiscal consolidation, a stable tax regime, and spring-cleaning stressed assets and government’s books.(Pollution)
Among the host of policy reforms and budget allocations announced by the finance minister in her speech, one particular policy, The Vehicle Scrappage Policy, has the potential to evolve as a game changer.
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What is this Policy?
Image Source: TUV Rheinland
Once implemented, private vehicles that are older than 20 years and commercial vehicles that are more than 15 years old will have to undergo a fitness test. It is possible for vehicles to pass the test but the guidelines of the policy are such that keeping a car beyond the accepted 20-year period will turn out to be a very expensive matter. The cost of the fitness test itself will be around Rs 40,000 and these vehicles need to undergo this test after every five years, costing the same. The government also plans to charge a green tax on such vehicles every time the fitness certificate is renewed. So, keeping such a car in road ready shape will burn a big hole in the pockets of the owners.
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Read Also : Pollution: The Biggest Enemy to Life in India
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Vehicles that don’t pass the fitness test will not be able to get past the mandatory re-registration. So, such vehicles will be unregistered making it illegal to drive them. These tests, according to the Finance Minister, will be conducted in automated fitness centers, which will determine whether a particular vehicle is fit to be driven on roads, or needs to be handed over for scrap heap. Use of automated test centers will help avoid corruption and other malpractices.
What does the Government Seek to Achieve?
At first glance, this policy seems a bit harsh towards car owners but it has a great potential towards reducing urban pollution levels while galvanizing automotive sales at the same time.
Car owners are likely to purchase a new vehicle once they scrap their old one and with new emission norms coming up every year, new vehicles a that are BS IV and BS VI compliant are more efficient as well as have more features in terms of passenger safety. So, this policy once implemented will not only help reduce pollution but will also help to increase the number of more efficient and safe vehicles all over the country.
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Read Also : India Pollution Tracker: Air quality index today in Delhi, Mumbai and other major cities
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How Does the Government Plan to Implement it?
This policy is a big change so the government intends to test drive the policy by making it a voluntary endeavor before enforcing it as a mandatory law. It also has plans to provide owners that send their cars to the scrap heap with special monetary incentive.
The Vehicle Scrappage policy has the potential to become the underdog of this year’s budget as not a lot of people are talking about it but it has the potential to positively impact multiple aspects of our daily lives as well as our economy.
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