5 Reasons Why We Should Welcome The New Scrapage Policy.

The New Scrapage Policy | Aiming Higher.


The new scrapage policy aims to -scrap old, unfit and polluting vehicles -creating an infrastructure for automated testing of vehicles that have completed the registration period (as per the registration law a passenger vehicle is valid for a period of 15 years and commercial vehicle is valid for a period of 10 years from the date of issue).


1. Reduces pollution.


We, people across the globe wish and love to live in an environment, free of pollution. This new scrapage policy ensures and maintains an eco friendly environment triggering the concept of GO GREEN to three folds; as ONE CRORE vehicles without proper fitness and registration will be scraped annually. This policy will envisage and sustain a great impact on our ecosystem.


Voluntary Vehicle Fleet Modernisation Program is a significant step towards modern mobility with green growth. It will create a robust ecosystem for safer roads and structured scrappage sector.” -Prime Minister Shri Narendra Modi.

2. Improvement of road and Passenger safety.


'A boring day can be brightened by a drive'. Our road standards will be improved and maintained, as only quality vehicles will be on roads. This gives us an assurance for enjoying each drive, making it a memorable one with co passengers and safe driving with families and a more safe and accident free journey.


3. Employment opportunity and a boost to auto sector.


This policy will open a lot of desirable employment opportunities. This will develop a new business model in scrapping industry, creating a huge network throughout India .The juice of technology will mould successful entrepreneurship on a grand scale.


4. Robust auto ecosystem.


The policy will make a revolution in the scrapping industry as it is expected to create a ROBUST ecosystem for safer roads and infrastructure and a clean atmosphere, as it improves fuel efficiency. High value addition will contribute higher tax revenue to the government and expected increase in 3-5X scale increase of larger traders. This network will have an organised setup and index based pricing with digital payments.


5. Incentive plans from the scrap.


Incentives include: Scrap value for the old vehicle given by scrapping centre, approximately 4-6 % of ex-showroom price of a new vehicle. Draft rule notified to the state government: To offer concession for motor vehicle tax, Waive off registration fee for new vehicles, 5% discount to be provided by the auto OEMs on purchase of new vehicles.


The new Indian scrapage policy aims to be organised, transparent, environment-friendly, unlocking values to a new business model with a positive impact on our economy.


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