Vehicle Scrappage Policy:
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Vehicle scrappage policy aims to phase out old and unfit vehicles.
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Vehicles would undergo fitness tests after 20 years in automated fitness centres in the case of personal vehicles (PV), and after 15 years in the case of commercial vehicles (CV).
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Significance:
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The policy would help in encouraging fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and the oil import bill.
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The policy would provide an impetus to the automobile sector and the economy at large.
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It will set in motion a circular economy with the subsequent economic and social benefits.
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