Union Budget 2021 | Nirmala Sitharaman announces a vehicle scrapping policy to phase out old vehicles

Union Finance Minister Nirmala Sitharaman, in her Budget speech for 2021- 22 has proposed a vehicle scrapping policy as an initiative to tackle the burdening problem of air pollution.

Ms. Sitharaman said the policy would help to phase out old and unfit vehicles. This will help in encouraging fuel-efficient, environment-friendly vehicles thereby reducing vehicular pollution and oil import bills.

Vehicles will undergo a fitness test in automated fitness centres after 20 years in case of personal vehicles and after 15 years in case of commercial vehicles, said the Finance Minister.


Details of this scheme will be separately shared by the Ministry, she added.

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