Unfolding The Process
The Ministry of Road, Transport and Highway issued a notification which states that from April 1, 2022, the incentive policy will come into effect. It was first announced in the Union Budget for 2021-22. Scrap value, tax rebate, discount on new vehicle, fee waiver etc. are some of incentives encourage by the government to reduce the pollution of old and effective vehicles bringing down vehicular air pollutants, improving road and vehicular safety. The concession shall be available up to 8 years in the case of transport vehicle and up to 15 years for non-transport vehicles.
This policy will boost sales of heavy and medium commercial vehicle that had been in the contraction zone as a result of economic slowdown triggered by the bankruptcy of Infrastructure Leasing and Financial Services( IL&FS) and covid-19 pandemic. Moreover, it will help generate in employment and an investment of 10.000 crores rupees will be pumped. In addition to it, it will improve fuel efficiency and reduce pollution and also will lead to create for more scrap yards in the country. Its active recovery of waste from old vehicles, the policy is expected to boost the automobile sector and also address the environmental concerns as discarding old vehicles is likely to reduce carbon emissions.
Globally, as scrappage policy has been followed by boost in demand in the auto manufacturing sector, specially in Europe and the US. It will give India Inc time to come up with an ecosystem where interesting and subsequent scrapping can happen organically without the consumer facing duress. Also, market will drive the number and concentrations of fitness centres in an urban area. A new ecosystem for vehicle for help in bringing sustainable growth in the country.
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