Current AffairsEconomics

Vehicle Scrappage Policy, 2021

The launch of India’s vehicle scrapping policy or the Voluntary Vehicle-Fleet Modernization Programme (VVMP) seeks to usher in a new age of what it means to own and use an automobile in India.

Key Highlights

  • This programme aims to modernise India’s “vehicular population”.
  • The National Vehicle Scrappage Policy is also dubbed as “voluntary vehicle-fleet modernisation programme”.
  • It is in line with India’s goal for 21st century to achieve a clean, congestion-free and convenient mobility.
  • It also seeks to remove unfit vehicles from roads in an environment-friendly and scientific manner.
  • It seeks to create a viable circular economy and bring value for all stakeholders.
  • Under the policy, vehicles will be scientifically tested through authorised and automated centres before it is finally scrapped.


  • This policy of modernity in mobility will reduce the burden of travel and transportation.
  • Policy has several economic and environmental benefits. It will play a big role in modernising and phasing out the old polluting vehicles in an environment friendly manner.
  • It will generate about 50000 generate direct and indirect employment.
  • It will also promote self-reliance of India in the auto sector and metal sector.
  • According to the Union Road Transport and Highways Minister, Nitin Gadkari, currently, India has 10 million cars without valid fitness parameters that adds to pollution and fuel costs. Thus, replacement of old vehicles will positively benefit environment.

Which vehicles are to be scrapped?

Commercial vehicles with age of 15 years and personal vehicles with age of 20 years old have been marked for scrapping irrespective of whether they run on diesel or petrol. These vehicles would be scrapped if they fail an automated fitness test following which these will be deregistered.

Tags: Current Affairs, Economics

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