Why it is news?
- Scrap page scheme for commercial vehicles (CVs) is one of the most sought-after measures in the upcoming Union Budget for 2020-21.
What is it?
- Scrap page policy refers to the provision of financial incentives to the owners of vehicles to get them to scrap out-dated models and replace them with newer vehicle
- When it was originally conceived in May 2016 as the Voluntary Vehicle Fleet Modernisation Programme, it was decided that vehicles, mainly trucks, older than 10 years or those below BS IV emission standards would be eligible for incentives if they were scrapped and replaced with new ones.
A 50 per cent waiver on excise duty on new vehicles and discounts from the auto manufacturers were envisaged as incentives.
In March 2018, the age of vehicles to be scrapped was increased to 20 years and the implementation date was set to April 2020. Draft guidelines for setting up authorised scrapping centres were put out in October 2019.