New Delhi: Finance Minister Nirmala Sitharaman while presenting the Budget-2021 today announced the voluntary vehicle scrapping policy to phase out old and unfit vehicles in the country.

As per the policy, vehicles will undergo fitness test at automated fitness centres after 20 years (personal vehicles) and 15 years (commercial vehicles).

"We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help encourage fuel-efficient and environment-friendly vehicles, thereby reducing vehicular pollution and oil import bills," said Sitharaman.