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Union Budget 2021: Private vehicles older than 20 years to be scrapped

10:49 AM Feb 02, 2021 IST | Ground report
union budget 2021  private vehicles older than 20 years to be scrapped

The Central Government recently decided to implement the junk policy for four wheelers in the general budget. According to the policy, Therefore, any vehicle, bought and registered, in, or before, the year 2000 will no longer be used on the roads.

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After this period the fitness test of vehicles will have to be done. To reduce the number of old vehicles, a fee of three times will have to be paid for the Fitnet Certificate and for new registration.

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The Finance Minister said that 15 year old commercial trains and 20 year old private vehicles can be converted into junk. However, this policy will be voluntary for now. That is, if you do not want to scrap, then a fitness certificate has to be taken.


 Now what will be the terms and conditions, how much incentive will be given, all these things will be issued separately by the Ministry of Roads and Transport. Most auto companies have welcomed this policy, but the whole policy is yet to come out.


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President of the Federation of Automobile Dealers Association Vinkesh Gulati said that if we consider 1990 as the basis for this, then about 37 lakh commercial and 52 lakh passenger vehicles are coming in this range’. 


He added ‘Now we have to see how many and what kind of incentives are announced in this policy. After that it will be able to know how much positive effect this is going to have, because people will come forward only after seeing the incentive.’


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There are an estimated 6 million vehicles on Indian roads that are more than 15 years old and are in need of a replacement. According to the government, these vehicles are the prime contributors to vehicular pollution. As per an HDFC Bank report an estimated 9 million vehicles will fall under this category by FY21 and 28 million by FY25.

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