Nitin Gadkari’s New Plan for a Cleaner India: The Vehicle Scrapping Policy
Nitin Gadkari, the Union Minister for Road Transport, recently shared a big goal: to get rid of 97 lakh (9.7 million) old, polluting vehicles across the country. He believes this is a huge opportunity, as it could generate an impressive ₹40,000 crore in Goods and Services Tax (GST) for both the central and state governments. This initiative isn’t just about money; it’s also about creating jobs and a cleaner environment. The vehicle scrapping policy is a game-changer for India’s automotive sector.
A Policy for a Healthier Future
The government’s Voluntary Vehicle Fleet Modernization Program (V-VMP), or the vehicle scrapping policy, aims to phase out these aging vehicles in an eco-friendly way. As of August this year, over 3 lakh (300,000) vehicles have already been scrapped. A significant portion of these were government-owned vehicles, leading the way for this change. The goal is to reduce pollution and make our roads safer. The policy also encourages a circular economy by recycling materials from old vehicles.
For more details on the policy’s aims and objectives, you can visit the official National Single Window System website.

Key Rules for Vehicle Fitness
Under the Motor Vehicles Rules, different types of vehicles have specific rules for fitness tests. For commercial vehicles, a fitness test is required every two years for the first eight years, and then every year after that. Private vehicles, on the other hand, need a fitness test at the time of registration renewal, which happens after 15 years, and then every five years subsequently. For government-owned vehicles, their usage expires after 15 years. This is a core component of the vehicle scrapping policy.
A Win-Win for All
The minister also mentioned that the vehicle scrapping policy can reduce the cost of auto parts by as much as 25 percent. He is encouraging the automobile industry to offer at least a 5% discount to customers who scrap their old vehicles and buy new ones. This isn’t charity; it’s a smart move that will increase demand, create new jobs, and boost the entire auto industry. The incentives offered are a crucial part of the vehicle scrapping policy to drive adoption.
The Economic and Environmental Impact
The vehicle scrapping policy has far-reaching benefits. By removing unfit vehicles from the road, it will reduce air pollution and improve road safety. Economically, it will generate a large amount of revenue for the government and create a new industry for recycling and vehicle dismantling. The policy also aims to reduce India’s reliance on imported fossil fuels by promoting cleaner, more fuel-efficient vehicles.
Here is a summary of the policy’s key benefits:
Category | Details |
Economic Impact | Generates ₹40,000 crore in GST, creates 70 lakh jobs, reduces auto component costs by 25% |
Environmental Impact | Reduces pollution, improves fuel efficiency |
Consumer Benefits | 5% discount on new vehicles, waiver on registration fees, reduced road tax |
Safety | Removes old, unsafe vehicles from roads, reducing accidents |
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