Finance Minister Nirmala Sitharaman has announced to scrap old cars in the general budget for the year 2021-22, which will help control pollution. Oil import bills will also be reduced. An automated fitness center will be built. Privately owned cars will have to move to the center after 20 years. The finance minister said personal vehicles would have to be sent to automated fitness centers after 20 years and commercial vehicles after 15 years.
The Narendra Modi government at the Center is preparing to launch a scrap policy for the auto sector from next month. The main objective of this policy is to provide relief to the auto sector. Under this policy you will have to sell your old car to a scrap center, after which you will get a certificate. The decision is expected to cover about 2.80 crore vehicle scrap policies, making it a major scrap center in the country. This is expected to create a large number of new jobs, as well as enable the automobile sector to get cheaper parts like steel, aluminum, plastics in recycling.
In September last year, the Automotive Component Manufacturers Association of India told Union Minister Nitin Gadkari at its annual session that the scrap policy was in its final stages. This has been announced in the general budget.
What is the scrap policy of Modi government
According to media reports, the central government is bringing in a scrap policy to remove 15-year-old vehicles from the roads. It aims to promote 15 year old cars. For this, it is proposed to levy several times tax on re-registration of vehicles.
What can happen if you don't give an old car
The scrapage policy proposes to charge a fee of up to Rs 15,000 for re-registration of an old car. Not only that, it is proposed to renew the fitness certificate for commercial vehicles every 6 months as well as increase the fitness certificate fee many times.
Can the common man benefit
Experts say that after the implementation of the auto scrapage policy, if a person buys a car and it costs Rs 10 lakh, there is talk of giving a discount of around Rs 3 lakh on the car at 30 per cent. This is because the new car reduces pollution, as well as the auto industry. The automobile sector is also supporting the auto scrapage policy.
What's the benefit of a new policy?
According to reports, the scrapage policy will be implemented soon after the cabinet passes it. Scrapage policy in times of epidemic will work like a lifeline for the economy.
According to experts, GST of 50 to 100% is likely to be waived on the purchase of a new vehicle instead of a vehicle that will go into scrap. However, the final decision on this will be taken by the GST Council. The new policy is expected to fetch the government Rs 9,600 crore from GST and Rs 4,900 crore in the next five years. According to experts, after the old vehicle goes into scrap, the vehicle owner will buy a new vehicle, which will benefit the Center and the states by Rs 38,300 crore from GST.
According to a report, the removal of old vehicles and the arrival of new ones is estimated to save Rs 9,550 crore. It will save Rs 2,400 crore from next year alone. Steel accounts for 50 to 55 percent of a vehicle. The scrap of these vehicles will fetch about Rs 6,550 crore worth of steel scrap and not so much scrap has to be procured from abroad.
Steel scrap worth Rs 1,500 crore will be found in the next one year alone. At present there are no organized units to extract steel in the scrap market, at the same time it has been observed that engines are removed from vehicles in scrap and used to make bogus vehicles.
What will happen to your old car?
The scrapage policy eliminates the need to remove 15-year-old vehicles from the road, but requires a fitness certificate every year to operate such vehicles. At the same time, the registration renewal fee has been increased from two to three times, which will attract motorists to sell old vehicles and buy new ones.
In 2001, 7 million vehicles were registered
Statistics show that 70 lakh passenger vehicles were registered in 2001, while 11 million commercial vehicles were registered in 2005. That is why so many vehicles will be removed from the road immediately. After which these vehicles will be removed every year in a registered manner. This will be of great help to the auto sector. Their sales will accelerate. So the sales of auto sector goods will also increase.
34 lakh LMV 15 years old
According to Union Minister Nitin Gadkari, there are 34 lakh LMVs in the country which are 15 years old. I.e. after 5 years it will have to be removed from the road. 51 lakh LMV vehicles are more than 20 years old. 17 lakh medium and heavy commercial vehicles are 15 years old which do not have any valid fitness certificate. The scrapage policy will take effect from 1 April 2022.
50 thousand new jobs will be found
Nitin Gadkari said the policy would invest Rs 10,000 crore and create 50,000 new jobs. All the auto brands in the world are also in India. With this policy, the country's auto sector economy will grow from Rs 4 lakh crore to Rs 6 lakh crore.
👉 IMPORTANT LINKS
LIVE BUDGET IN GUJRATI - CLICK HERE
BUDGET 2020/21 LIVE - CLICK HERE
VEHICLE SCREPAGE POLICY - CLICK HERE
KHEDUTO, GARIBO, EDUCATION MATE - CLICK HERE
JUNI CAR NU SHU THASE - CLICK HERE
LOKO NA SVASTHYA BABATE - CLICK HERE
A total of 2.15 crore vehicles were sold last year
In FY20, the Indian automotive market has shrunk by 18 per cent. A total of 2.15 crore vehicles were sold in 2020. In which 7.17 lakh commercial vehicles were sold. That was a 29 percent decrease. The market for three-wheelers fell 29 per cent to 6.36 lakh units. Similarly, the market for passenger cars and two-wheelers has also declined.
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