April 11, 2024

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Vehicle scrappage policy to reduce cost of EVs says  Nitin Gadkari 

Vehicle scrappage policy

Vehicle scrappage policy to reduce cost of EVs says  Nitin Gadkari 

The Union Road Transport and Highways Minister Nitin Gadkari have once again explained that the National Automobile Scrappage Policy will help to increase the economic growth and boost employment generation in the country. The newly launched Voluntary Vehicle Fleet Modernisation Programme or the vehicle scrappage policy will help to reduce the cost of manufacturing electric vehicles in India. It will also help to phase out unfit and polluting vehicles.

Vehicle scrappage policy

The Minister said that battery recycling will help to bring down the price of electric vehicles and will also help in developing lithium-ion batteries in India. He also said that this policy will also help to increase sales of new vehicles.  It pointed out that the automobile sector provides direct and indirect employment to 75 lakh persons.

He said that in the near future, electric vehicles will be cheaper than petrol and diesel ones. “I am going to launch electric tractors next month.” Under this policy, people who give their old vehicle for turning it into scrap will be given a certificate by the government. People with this certificate will not be charged a registration fee on the purchase of a new vehicle.


A few months ago, Nitin Gadkari has welcomed the Voluntary scrappage policy which was announced in the Union Budget 2021-22. Finance Minister Nirmala Sitharaman in her budget announced the voluntary vehicle scrapping policy to phase out old and unfit vehicles. The vehicles would undergo fitness tests. People with personal vehicles have to undergo a fitness test after 20 years of the purchase of their vehicle and in the case of commercial vehicles, the vehicles should undergo a fitness test after 15 years.

The new vehicle scrapping policy will be implemented in the country on 1st April 2022. The declaration of the policy will be done within 15 days from the day the budget has been announced.

Also, read related article: Under car scrappage scheme UK to give 6000 pounds to car owners

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