There is good news for consumers who are going to junk their old vehicles and buy a new one under the vehicle scrapping policy as automakers will give about 5 per cent rebate on the new purchase, Union minister Nitin Gadkari has said.

The voluntary vehicle scrapping policy announced in the Union budget for 2021-22 provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years.

“Automobile manufacturers will provide about 5 per cent rebate on new car purchases” to the consumers in lieu of scrapping of the old, Union road transport, highways and MSME minister Gakdari said.

“There are four major components of the policy... Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout in the country and we are working in that direction,” Gadkari said.

Automated fitness tests will be set up under the public-private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres, he said.

Driving such vehicles that fail to pass automated tests will attract huge penalties and also be impounded, the minister said.