5% Discount On New Car For Exchange Of Old Car – Free PDF Download

What has happened?

• There is good news for consumers who are going to junk their old vehicles and buy a new one under the Vehicle Scrapping Policy as automakers will give about 5% rebate on the new purchase, Union minister Nitin Gadkari has said.
• The voluntary vehicle scrapping policy announced in the Union Budget for 2021-22 provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years.
• “There are four major components of the policy…Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles.
• These will be required to undergo mandatory fitness and pollution tests in automated facilities.
• For this automated fitness centres would be required through out in the country and we are working in that direction,” Gadkari said.

Automated fitness tests

• Automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres.
• Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded, the minister said.

Boon for auto sector

• This policy is going to be a boon for the automobile sector, making it one of the most profitable sectors which in turn would generate huge employment, the minister said.
• The policy is touted as a major step to boost the Indian automobile sector, reeling under the adverse impact of the COVID-19 pandemic.
• It would lead to a 30 per cent boost to the Indian automobile industry turnover to ₹10 lakh crore in the years to come from the present about ₹4.5 lakh crore.

Export

• The export component of this which at present is ₹1.45 lakh crore will go up to ₹ ₹3 lakh crore.
• Once the policy comes to practice availability of scrapped material like steel, plastic, rubber, aluminium etc will be used in manufacturing of automobile parts which in turn will reduce their cost by 30-40%.
• Gadkari said the policy will give a boost to new technologies with better mileage of vehicles besides promoting green fuel and electricity and
• Cut on India’s huge ₹8 lakh crore crude import bill which is likely to increase to about ₹18 lakh crore.

How many vehicles would go for scrappage?

• The minister said initially about one crore polluting vehicles would go for scrapping.
• Of this an estimated 51 lakh will be light motor vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs that are above 15 years.
• It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.
• It will give a boost to ‘Aatmanirbhar Bharat’ campaign, he added.
• Gadkari had said the policy will lead to new investments of around ₹10,000 crore and create as many as 50,000 jobs.
• These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles.

When will it be implemented?

• “Structure and framework of scrapping policy is under work and green tax has already been notified. Many states have notified in ineffective way,“
• Road Transport and Highways Secretary Giridhar Aramane had said last month.

Green tax

• The government had earlier said it plans to impose green tax on old polluting vehicles soon in a bid to protect the environment and curb pollution,
• While vehicles like strong hybrids, electric vehicles and those running on alternate fuels like CNG, ethanol and LPG will be exempted.
• The revenue collected through the green tax will be utilised for tackling pollution.
• Under the scheme, transport vehicles older than eight years could be charged green tax at the time of renewal of fitness certificate at the rate of 10-25% of road tax, as per green tax proposal sent to states for consultations after cleared by the ministry.

Why commercial vehicles are more of a concern?

• It is estimated that commercial vehicles, which constitute about 5% of the total vehicle fleet , contribute about 65-70% of total vehicular pollution.
• The older fleet, typically manufactured before the year 2000 constitute less that 1 % of the total fleet but contributes around 15% of total vehicular pollution.
• These older vehicles pollute 10-25 times more than modern vehicles.

Conclusion

• Industry experts said the policy will provide a fillip to the Indian government’s efforts to position India as a global automobile manufacturing hub,
• As well as benefit global automakers with manufacturing industries in India, including Japanese giants Suzuki, Toyota, Nissan, amongst others.

Q) The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere because it absorbs?

1. The water vapor of the air and retains its heat
2. Infrared part of solar radiation
3. The ultraviolet part of the solar radiation
4. All the solar radiations

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