Why is the vehicle test and vehicle lifetime included here. What has the vehicle to do with the Union Budget?


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    I say this once again: please add the relevant citations into your question! Where is the quote? Where is the link?
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    Apr 9, 2021 at 8:11
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  • They're copying California's "smog buyback program" which pays consumers to retire older cars, which are held to a lower smog standard. This is much more potent in India because a 25 year old Indian car has no smog controls or standards at all! The article also mentions ideas for mandatory retirement; that tends to raise eminent domain issues (if you take people's stuff, you have to pay them). Point being, all this stuff costs money. Apr 9, 2021 at 18:17

1 Answer 1



From the para I understand is by introducing voluntary vehicle scrapping policy, the government aims to phase out old and unfit vehicles so as to encourage eco-friendly and fuel efficient vehicles. The private vehicle of twenty year or older and commercial vehicle of fifteen year or old will be subject to undergo fitness test in automated fitness centers and if found unfit, owner has to leave the vehicle to scrap and in exchange get a new fuel efficient and eco-friendly vehicle. As the speech mentions the word vehicle, it will be applicable to all vehicles and not just to two wheeler or four wheeler or multi-axle vehicles

That covers the whyit is being proposed.

Apart from this, a major category of people use 20 year and older vehicles due to short of money and fear of losing comfort that they have in their existing vehicle. These are the senior citizens and the persons reaching that stage who desire to stick on to the utmost comfort level that they enjoy. With respect to short of money, if financial aid is provided to lower middle, middle and upper middle class vehicle owners, then there is a chance to show willingness to exchange their vehicle. Their intention is not to buy a new vehicle but to get a vehicle at subsidized rate.

The required subsidy will require a budget item. That cost could be high. Later they quote numbers from countries that have had similar programs. Of course the money will flow from the government to the auto industry.

  • But what would the subsidy do?What is its role here? Apr 9, 2021 at 10:30
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    The government would give money to the poor, or the elderly, or anybody to help them pay for the new vehicle. It could be a check, or a tax break. It would make the new car more affordable. Apr 9, 2021 at 10:34

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