What is the voluntary vehicle scrappage policy?
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During her Union Budget 2021 speech, Finance Minister Nirmala Sitharaman on Monday announced a voluntary vehicle scrappage policy. The policy could "phase out old and unfit vehicles," thereby reducing emissions, increasing fuel efficiency, and also leading to an increase in demand. Notably, the auto sector has been facing a sharp slowdown since 2019 and the COVID-19 pandemic further exacerbated the problem.