Union Minister Nitin Gadkari has announced that vehicle manufacturers will offer discounts on new vehicles if buyers scrap their old vehicles and present a valid Certificate of Deposit. This decision was made during the SIAM CEO's Delegation meeting. The initiative supports the National Vehicle Scrappage Policy, launched in August 2021, which aims to remove unfit, polluting vehicles and promote a circular economy. States and Union Territories will provide up to a 25% road tax rebate on vehicles purchased after scrapping older ones. Personal vehicles must undergo fitness tests after 20 years, while commercial vehicles require testing after 15 years.