Budget 2021: In a big breaking news reported by Zee Business TV reporter Chetan Bhutani, the Finance Minister Nirmala Sitharaman may announce the long-awaited scrappage policy in the upcoming Union budget. Bhutani reported that that long-awaited scrappage policy will be presented on February 1, 2021 as the auto companies and the central government have reached an agreement over the issue of incentive.
Reporting about the scrappage policy announcement in budget 2021 Bhutani told Zee Business Managing Editor Anil SInghvi, “The major bone of contention in the announcement of Scrappage Policy was incentive. Now, it has been reported by the top government officials that the government has agreed that incentive will be decided by the auto companies. Now, it will be up to the auto companies whether they want to give 1 per cent or 3 per cent incentive to the customers.”
See Zee Business Live TV Streaming Below:
The Scrappage Policy was lying in limbo as the government was of the opinion that global standards of incentive is 5-10 per cent, which was not acceptable to the auto companies. They were negotiating between 1-3 per cent. But, Bhutani reported that top 3 listed auto companies had agreed to give 3 per cent incentive. However, rather than keeping the policy further in limbo, the government has decided to leave the incentive matter to the auto makers and announce the Scrappage Policy in this budget, said Bhutani.
See full coverage in video below:
— Zee Business (@ZeeBusiness) January 12, 2021
Speaking on the impact of this scrappage policy on stock market investors Anil Singhvi said, “This will have positive impact on the commercial vehicle companies as they will be the major beneficiary of this policy announcement.”