All vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, older than 15 years, will be de-registered and scrapped from April 1.
The rule shall not apply to the special purpose vehicles (armoured and other specialised vehicles) used for operational purpose for defence and maintenance of law and order and internal security.
As per the announcement in Union Budget, the policy provides fitness tests after 20 years, while commecial vehicles will require it after 15 years.
Under the new policy, the Centre has said states and Union Territories will provide up to 25% tax rebate on road tax for vehicles which are bought after scrapping old vehicles.