Why is the vehicle test and vehicle lifetime included here. What has the vehicle to do with the Union Budget?
Quoting from the same article UNION BUDGET 2021: VOLUNTARY VEHICLE SCRAPPING POLICY AND ITS EFFECTS:
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.