Vehicle scrapping policy in India
The new budget of the FY 2021-22 has been announced yesterday by India’s Honorable Finance Minister Nirmala Sitharaman. The budget speech for FY 21-22 lasted with a record of 1 hour and fifty minutes.
The budget for FY 2021-22 is said to be great for some of the sectors but it has also brought disappoint in some sectors. The major concern from the budget was the reduction in GST, tax and also about supporting the adoption of electric vehicles in the country but we haven’t got to listen to any of those.
But in Finance Minister speech’s in ‘Part A’ she has mentioned about the ‘Clean Air’, that is something which made me happier about the budget.
Nirmala Sitharaman proposed an amount of 2,217 crores rupees to tackle the burgeoning problem of air pollution which will be benefited to 42 urban centres with a million-plus population. This amount will be definitely used in the adoption of green mobility solutions.
Voluntary vehicle scrapping policy
In the FM new budget electric vehicles
The implementation of this policy will phase out all 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 and an official notification will be announced by the Ministry.
The scheme will help people to replace their older vehicles with newer ones. This policy will massively help in reducing the vehicular pollution levels and oil import bill. Apart from that, it will definitely boost the electric vehicles industry.
Many automakers in the industry like Tata Motors, Mahindra & Mahindra, etc are already exploring the scrappage policy opportunities in India.
Society of Manufacturers of Electric Vehicles
(SMEV)
The Society of Manufacturers of Electric Vehicles
Sohinder gill, Director General, Society of Manufacturers of Electric Vehicles said “We thank the Hon’ble Finance Minister for announcing the Scrappage policy, which would help in encouraging the adoption of greener vehicles. Though we are awaiting more details on the policy but hope that it would be designed in such a way that would automatically push the adoption of electric vehicles.
He said, the fund allocated for the Clean Air 2,217 crores for 42 urban centres is a good initiative and will be used for the promotion and adoption of electric vehicles.
The government’s plan for developing the public transport sector under PPP models with an outlay of Rs 18000 crores to operate 20000 buses will help the EV industry. He also said that if the government would have given support to more number of e-buses.
He urges the government to make compulsory procurement of E-Buses under the scheme which will help to reduce the pollution levels.
Advantages
- Indirectly boost demand for electric vehicles
- Generate incremental demand
- Replace old and polluting vehicles
- Change in the commercial market
- Create residual industry
Disadvantages
- Increased customs duty on certain auto components to increase domestic manufacturing will also affect the electric vehicles
More details of this policy will be provided by the Ministry of Road Transport and Highways (MoRTH). Let us hope they design the policy that will also benefit the electric vehicles industry in the adoption of electric vehicles
Also Read: Union budget 2021 live updates
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dear sir,
I am planning to buy an E bike. ease suggest me a good company. My budget is 50k.
You are looking for an electric bike or electric bicycle?
Electric bike 🚲
I am native of Hyderabad.