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Vehicle Scrapping Policy Update: Transforming India’s Roads and Economy

Union Minister for Road Transport and Highways, Nitin Gadkari, has unveiled an ambitious plan to phase out 97 lakh old and polluting vehicles across the country. This initiative is expected to generate nearly ₹40,000 crore in Goods and Services Tax (GST) for the central and state governments. Beyond revenue, the policy is designed to promote environmental sustainability, improve road safety, and create large-scale employment opportunities making it a landmark step for India’s automotive sector.

Building a Cleaner and Safer Future


The Voluntary Vehicle Fleet Modernization Program (V-VMP), commonly known as the Vehicle Scrapping Policy, is focused on retiring aging vehicles through an eco-friendly process. As of August, over 3 lakh vehicles—many of them government-owned—have already been scrapped. By prioritizing the removal of outdated vehicles, the policy aims to reduce emissions, enhance road safety, and encourage a circular economy through material recycling.

Fitness Rules Under the Policy


The Motor Vehicles Rules lay out clear guidelines for fitness testing:

  • Commercial Vehicles: Fitness test required every 2 years for the first 8 years, and annually thereafter.
  • Private Vehicles: Fitness test required at registration renewal after 15 years, then every 5 years.
  • Government Vehicles: Mandatory de-registration after 15 years of use.

These measures form the backbone of the policy, ensuring that only roadworthy and environmentally compliant vehicles remain in use.

Benefits for All Stakeholders

The policy is structured to create a win-win scenario:

  • Economic Growth: Estimated to generate ₹40,000 crore in GST and create 70 lakh new jobs.
  • Automotive Industry: Reduced cost of auto components by up to 25%.
  • Consumers: Incentives such as a minimum 5% discount on new vehicle purchases, exemption from registration fees, and reduced road tax.
  • Environment & Safety: Lower pollution levels, improved fuel efficiency, and the removal of unsafe vehicles from roads.
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A Game-Changer for India

The Vehicle Scrapping Policy is more than just a regulatory measure it is a catalyst for economic growth, industrial innovation, and environmental protection. By aligning financial incentives with environmental responsibility, the government is setting the stage for a cleaner, safer, and more sustainable future for India’s transport sector.


Source: MECHHELP
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