Rules to come into force from April 1.
All vehicles older than 15 years owned by the central and state governments, including buses owned by transport corporations and PSUs, are to be de-registered and scrapped.
Special-purpose vehicles used for operational purposes for the defence of the country, the maintenance of law and order, and internal security will be exempted.
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles and 15 years for commercial vehicles.
Under the new policy, States and Union Territories will provide up to a 25% tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.