An Analysis of Vehicle Scrappage Policy, 2021

This paper provides an in-depth analysis of the Vehicle Scrappage Policy and the key facets of the Policy. India is one of the largest manufacturers and consumers of vehicles in the world. With a population of over 1.4 billion people and developing public transport facilities to all corners of the country, owning a vehicle is often referred to as a convenient way of transport and a status symbol. A substantial number of vehicles bought by any household have an element of attachment to the same and as such the individual is unwilling to dispose of the vehicle. However, the vast majority of the population has no means to purchase new vehicles owing to the implementation of heavy taxes, expensive production costs, and changing production plants to adhere to changing emission norms. Thus, the prices of the new vehicles are skyrocketing day by day. As such, people are keen on retaining their old vehicles which in turn are more polluting, less safe and prone to accidents and breakdowns. This paper provides with the scrapping mandates as issued by the government in various states and the incentives provided by the government for people who opt for voluntary scrapping as well as mandatory scrapping of their vehicles. It also enumerates the exceptions to the policy along with the researchers' suggestion for effective implementation of the Policy.