Here’s all you need to know about the vehicle scrappage policy Gadkari announced

Union minister Nitin Gadkari on Thursday announced the details for the country’s long-awaited vehicle scrapping policy in Parliament. Here is all you need to know about the policy:

• Gadkari said the absence of a fitness certificate will mean automatic cancellation of registration for commercial vehicles that turn 15

• The registration of a private vehicle will be for 20 years, with renewal requiring proof of fitness.

• Gadkari said the government plans to incentivise owners of old vehicles to scrap these through registered scrap centres.

• The move is expected to reduce pollution, create job opportunities, through the registered scrapping centres, and boost demand for new vehicles.

• Gadkari said the scrapping policy will lead to a new investment of around ₹10,000 crore and create 35,000 jobs.

• Some of the incentives are scrap value for the old vehicle given by the scrapping centre, expected to be 4-6% of the price of a new vehicle; a potential road-tax rebate of up to 25% for new personal vehicles and up to 15% for new commercial vehicles; and a potential discount of 5% against the scrapping certificate.