Budget 2023: Special emphasis on vehicle scrapping policy

NEW DELHI: The automobile manufacturers hailed the special move by the Union Budget 2023-2024 on vehicle scrapping policy that has allocated adequate funds to replace vehicles that are over 15 years old. This move will provide the opportunity for fleet modernisation and reduce fossil fuel consumption to a great extent.

Nirmala Sitharaman, the Finance Minister, Government of India, announced that vehicles owned by all the states and the central government including buses owned by the transport corporations and public sector that have been on the road for over 15 years will be scrapped.

Sitharaman said, “Replacing old polluting vehicles is an important part of greening our economy. To further the vehicle scrapping policy mentioned in budget 2021-22, I have allocated funds to scrap old vehicles of the Central government. States will also be supported in replacing old vehicles and ambulances.”

As part of a national mission to achieve the net zero carbon emission goal, Dheeraj Hinduja, the Executive Chairman of Ashok Leyland, stated that the company’s commitment and dedication to clean energy vehicles for a cleaner and greener future is also echoed by this budget.

Vikram Gulati, Country Head and Executive Vice-President of Toyota Kirloskar Motor, mentioned that this move will help to reduce the consumption of fossil fuels and will also generate demand for new vehicles.

Sharing the same view, Venkatram Mamillapalle, Country CEO and Md, Renault India, said, “The policy will not only boost the sales but will also enable in achieving clean and green environment for overall sustainable development. Additional funds infusion in the scrappage policy is a remarkable step in the right direction to achieve India’s goal of being carbon neutral by 2070.” Mamillapalle added, “It would also eventually help the entire ecosystem of the automotive industry as this will translate into growing order books of original equipment manufacturers, increased output, and job creation.”