By TIOL News Service

NEW DELHI, FEB 01, 2021: ROAD Transport and Highways Minister Mr Nitin Gadkari welcomed the new Voluntary Scrappage Policy to phase out old and unfit vehicles that was announced in the Union Budget on Monday.

Finance Minister Ms Nirmala Sitharaman said vehicles will have to undergo a "fitness test" in automated centres after 20 years for personal vehicles and 15 years for commercial vehicles.

"I welcome the new Voluntary Scrappage Scheme for the prevention of pollution," Mr Gadkari wrote on Twitter.

In his post-budget interaction with the media, Mr Gadkari said that the scrappage policy will lead to new investment of around Rs. 10,000 crores and create as many as 50,000 jobs.

The minister said the policy would cover an estimated 51 lakh Light Motor Vehicles (LMV) that are above 20 years of age, while another 34 lakh LMVs are above 15 years. It would also cover 17 lakh Medium and Heavy Motor Vehicles (HMV), which are above 15 years, and currently without valid fitness certificates.

"These vehicles are estimated to cause 10 to 12 times more pollution than the latest vehicles," he said.

Outlining the benefits of the policy, Mr Gadkari said it would lead to recycling of waste metal, improved safety, reduction in air pollution, reduction in oil imports due to greater fuel efficiency of current vehicles and stimulate investment.

The Ministry of Road Transport and Highways said further details of the policy will be released within 15 days.