Nirmala Sitharaman, Minister of Finance, in her speech, announced that the government has allocated “adequate funds” for scrapping and replacing old vehicles in Budget 2023. The FM said that old vehicles of the central government as well as state government will be replaced. She also covered ambulances of all the state governments in this major announcement.
“Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the Vehicle Scrapping Policy, mentioned in the Budget 2021-22, I’ve allocated adequate funds to scrap old vehicles of the central government,” Sitharaman said.
Also Read: Budget 2023 – Electric Vehicles to Become Cheaper, Subsidy on EV Batteries Extended
“States will also be supported in replacing old vehicles and old state ambulances,” she added. The vehicle scrappage policy is aimed at developing a dedicated ecosystem for phasing out old and polluting vehicles. As per the MoRTH data, it could attract addition investments and at the same time create thousands of jobs across the country.
This move of scrapping and replacing ageing vehicles with new vehicles (preferably EVs) from the Union government underlines PM Narendra Modi’s vision of a green economy. It could hugely benefit several automakers in the country such as Tata Motors, Hyundai, MG Motor, Kia and Mahindra – all of which sell EVs in the Indian market.
Mr. Suhas Rajkumar, Founder and CEO, Simple Energy, said “The budget for FY24 announced by FM Nirmala Sitharaman is encouraging on a lot of fronts, especially in the space we operate in. One of the key focus areas is Green Growth and the schemes announced are promising and we welcome the optimism ignited by the Finance Ministry in this space. These progressive schemes will surely enable rapid electrification in the country and encourage consumers to transition seamlessly towards green mobility which will help OEMs to script a robust growth story in the domestic market.”
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