The voluntary vehicle scrappage policy was announced during the Union Budget 2021-22 by the Indian Finance Minister, Nirmala Sitharaman. This new policy is touted as one of the major steps taken to curb air pollution which is expected to boost the Indian automobile sector. This new policy is likely to ease pressure on the sector caused by the adverse impact of the covid-19 pandemic. According to a report from PTI, the Union Minister said that buyers of new vehicles opting to scrap their old cars will receive benefits under the new policy. The road transport minister termed the policy as a boon, which would give the industry a 30 per cent boost with industry turnover to 10 lakh crore in the future.
Gadkari said to PTI, “Those going for the scrapping of their vehicles will get some benefits from the manufacturers. In fact, scrapping policy will prove to be a boon… not only it will boost the economy, benefit the automobile sector but also check vehicular pollution.”