In her Union Budget for 2021, Finance Minister Nirmala Sitharaman said that vehicles will undergo fitness tests after 20 years for PVs, 15 years for CVs. She also announced a voluntary vehicle scrapping policy.

The Centre declared compulsory scrapping of government vehicles which are more than 15 years old even as it moves to introduce a severe fitness and emission-related regime for phasing out of old personal vehicles.

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In earlier meetings on the proposed Vehicle Scrapping Policy, Prime Minister Narendra Modi had also asked the ministries concerned to finalise the policy before the budget and step up the setting up of automated fitness testing centres and vehicle scrapping outlets to ramp up the implementation of the policy.

The PM had also requested the officials to go through the scrapping rules of defence and railway ministries and put together the final proposal quickly, including the proposed incentives for people to scrap their old vehicles.