The first budget of the new government is likely to include a scrappage policy and a slew of measures to promote electric vehicles (EVs), sources told CNBC-TV18. Government bureaucrats and officials in the National Institution for Transforming India (NITI) Aayog have prepared a roadmap for the automobile sector and it comprises of three key points bringing a scrapping policy, promoting EVs and passage of the motor vehicles bill which has been pending in parliament.

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A scrapping policy is considered extremely crucial by experts and government bureaucrats because they believe that this is the key to reducing emission for the safety of passengers and fuel efficiency as well.

According to reliable sources, this scrapping policy could be introduced in the first budget of the Narendra Modi government's second term. There could be a regulatory cap on vehicle age, there could be certain barriers introduced to restrict the plying and operation of older vehicles on the EV front, the national mission on transformative mobility and battery storage has met several times since March 7 and there is a lot of work that is happening on a long-term EV policy.

First Published:May 24, 2019 3:04 PM IST