Budget 2021- 22 | Voluntary Scrappage Policy: Government’s Sword to cut the Air Pollution

While the Finance Minister, presented the Union Budget, 2021-22 today, the most talked about was the Voluntary Scrappage Policy even before the budget was presented. Let’s understand more about the Policy.

The motive behind introducing the said policy is to get rid of the unfit vehicles causing and contributing to air pollution and this has been the main reason why the Government has stressed upon this policy.

Nitin Gadkari, Union Minister for MSME and Road Transport and Highways has already announced that the details of the said policy will be out in 15 days.

It has been stated that the policy is likely to cover an estimated 51 lakh Light Motor Vehicles (LMV) that have the age of 20 years above, while another 34 lakh LMV’s that are above 15 years. Further 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.

The said vehicles are estimated to cause 10-12 time more pollution than the latest vehicles.

According to the Union Minister, the following could be the benefits of this policy:

  • Recycling of Waste Metal
  • Improved Safety
  • Reduction in Air Pollution
  • Reduction in Oil imports

With the removal of the above-categorised vehicles, there would be a booster to fuel-efficient and environment-friendly vehicles.

Government has been trying to curb air pollution and this could be a major step in that direction.


The post will be updated with the announcement of the policy.

One comment

  • Thank you for the overall information about the changes that take place in BUdget 2021.

    Despite there are no changes in Personal Tax Slabs, Budget 2021 India brings significant proposals to facilitate ease of compliance for the taxpayers.

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