Union Budget 2021: Voluntary vehicle scrapping policy announced to phase out old vehicles

New Delhi: Union Finance Minister Nirmala Sitharaman on Monday announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.

"We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help in encouraging fuel-efficient, environment-friendly vehicles. Thereby, reducing vehicular pollution and oil import bill," said Sitharaman in the Parliament while presenting the Union Budget 2021-22.

"Vehicle should 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," she added. In Part A of Budget 2021, the Union Finance Minister laid out a vision for Atmanirbhar Bharat to strengthen the vision of Nation First, doubling farmers` income, strong infra, women`s empowerment, healthy India, good governance, education for all, inclusive development.

The Union Budget 2021-22 proposals rest on six pillars: Health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India reinvigorating human capital innovation and R&D minimum government, maximum governance.