Union Road Transport Minister Nitin Gadkari has made an important announcement for customers who are ready to scrap old cars. Nitin Gadkari has announced a 5 per cent discount on scrapping of old cars when buying a new one. Gadkari said that in exchange for scrapping old cars, auto companies would offer customers a discount of around 5 per cent on new car purchases.
The Modi government has introduced a policy of voluntarily scrapping vehicles. It was announced in the Union Budget 2021-22. Gadkari gave more information about this policy. ‘There are four major components to a scrap policy. The minister said there are provisions of green taxes, other levies and such vehicles will have to undergo strict fitness tests in automated facilities. All vehicles will be required for automated fitness tests done without any human intervention, corruption or fudging of data. This will require self-drive fitness centres in the country. We are working in that direction, 'said Gadkari.
Self-drive fitness tests will be conducted through Public Private Partnership (PPP) mode. The government will assist private partners and state governments in setting up the necessary machinery for the scraps. Vehicles that fail the self-drive test will be penalized. This policy will be a boon for the automotive sector. This will benefit the automotive sector. This will create a lot of jobs, he said.