Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Particulars of the policy and possible benefits of it.
Vehicle scrapping policy
- The central government’s ambitious vehicle scrapping policy will become compulsory for all commercial vehicles from 2020 onwards and their life will be capped at 20 years
- The plan is to try and get the GST Council to consider a lower goods and services tax, or GST, on new commercial vehicles bought against a scrapped one, from the current rate of 28% to between 12% and 18%
- Once the cabinet approves the scheme, and till the deadline of 2020 when it kicks in, owners of vehicles older than 20 years can voluntarily scrap their vehicles and receive a discount on the purchase of a new one
Direction to the road ministry
- The road ministry has been directed to put up a proposal before the cabinet within the next three months, detailing the scheme
- The government expects 350,000 vehicles to be scrapped in the next two to three years
- It will not only help curb pollution but will also improve safety on the roads
- Besides other benefits will also accrue from recycling of scrap
Example of other countries
- China managed to remove 340,000 vehicles that were over 10 years old from its roads in 2016 by providing monetary incentives to owners to replace them with new ones