Which of the following is true about the Voluntary Vehicle Fleet Modernisation Programme?
1. It promotes scrapping of old vehicles to reduce emission.
2. The Ministry of Road Transport and Highways is the nodal agency.
3. The scheme incentivizes buyers of fuel-efficient new vehicles only in urban areas.

Correct option is C

The correct answer is: (c) Only 1 and 2 are correct
Explanation:
· Statement 1: Correct – The Voluntary Vehicle Fleet Modernisation Programme (VVMP), also called the Vehicle Scrappage Policy (2021), aims to scrap old, polluting vehicles to reduce emissions and improve road safety.
· Statement 2: Correct – The Ministry of Road Transport and Highways (MoRTH) is the nodal agency implementing this scheme.
· Statement 3: Incorrect – The scheme does not limit incentives to urban areas only; benefits apply nationwide through tax rebates, scrap value, and discounts on purchase of new vehicles.
Information Booster:
· Announced in Union Budget 2021–22, launched in August 2021.
· Personal vehicles >20 years and commercial vehicles >15 years failing fitness tests are eligible for scrapping.
· Incentives include scrap value (4–6% of ex-showroom price), road tax rebate (up to 25%), and registration fee waiver.
· Objective: Reduce vehicular pollution, boost auto industry, promote fuel efficiency.
· Fitness testing mandated at Automated Fitness Centres.