Vehicle Scrappage Policy will help in phasing out old, unfit vehicles. It aims to incentivise owners of old and polluting vehicles to scrap them. Vehicles plying on the road beyond their lifespan are considered to pollute the environment at a greater pace compared with newer cars. Recycling old vehicles will help in reusing key materials such as steel, plastic and copper which will result in reducing the cost of manufacturing new vehicles. People who give their old vehicle for turning it into scrap will not be charged any registration fee on the purchase of a new vehicle and may also be offered a five percent discount on new vehicles bought against the scrapping of these old vehicles.