PM Modi Launches Vehicle Scrappage Policy 2021

Today, Prime Minister Narendra Modi launched much awaited Vehicle Scrappage Policy during the Gujarat Investor Summit. It was earlier presented by Finance Minister Nirmala Sitharaman during the Union Budget 2021.


  • The policy will be implemented from 2023 onwards for Heavy Commercial Vehicles and from 2024 onwards for the personal Vehicles.
  • Vehicle scrappage will dependent on fitness rather than age.
  • There are more than 1cr vehicles without any valid fitness in India.
  • If you choose, Vehicle Scrappage policy, you will get various benefits like Tax rebates, reimbursements etc.

During the ongoing Gujarat Investor Summit, Prime Minister Narendra Modi launched much awaited and needed for the countries like India, The Vehicle Scrappage Policy, 2021. it was already presented by the Finance Minister N. Sitharaman during the Budget 2021 and thereafter Union Minister for Road, Transport and Highways, Nitin Gadkari revealed the details of the policy at the Lok Sabha Session.

Some important points about Vehicle Scrappage Policy 2021:

  • Automated Scrapping Centres will be developed under the PPP Model.
  • There will be a scrapping centre within 200km of every RTO.
  • Scrap value of the ex-showroom price of vehicle ranging from 4%-6% will be given to the owner of the vehicle.
  • Rebate of up to 25% will be given in road tax, if you choose the policy.
  • Policy will be voluntary.
  • Vehicle manufacturers will be advised to provide 5% discount on new vehicles if customer provides a scrapping certificate.
  • If you choose the policy, no registration fees for vehicles will be needed.
  • Fitness test will be conducted much like current practice of Pollution Under Control (PUC) certificate test.
  • Fitness test will be conducted at the designated Automated Fitness Centres.
  • If your vehicle fails in fitness test, your registration certificate will not be renewed.
  • Policy will be applicable from 2023 onwards for heavy commercial vehicles and from 2024 onwards for personal vehicles.

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