Scrappage Policy

A vehicle scrappage policy is programme that helps replacement of old vehicles with new ones. It encourages vehicle owners to scrap vehicles older than 15 years and purchase new ones instead. In order to facilitate this, the government offers financial or tax-based benefits to consumers on purchase of new vehicles. As part of the upcoming scrappage policy, the Indian government is contemplating waiving off the one time registration fee on purchase of a new vehicle after scrapping an old one.

India’s scrappage policy
The Minister for Road Transport and Highways has approved the policy of deregistration and scrapping of vehicles owned by the government departments and public sector units (PSUs). The new vehicle scrappage policy will come into effect from April 1, 2022. Under the new scrappage policy, government and PSU owned vehicles that are more than 15 years old will be deregistered and scrapped. Besides, registration fees will not be charged on vehicles purchased to replace old vehicles of the same category. The two things to concentrate in this policy are:

Key points to focus in this policy

Prime advantages of the policy

Challenges faced by the new scrappage policy

Companies that benefit from the policy

Financials of the above mentioned companies: