PM Narendra Modi launch the vehicle scrappage policy in India. PM launch the policy at the Gujarat Investor Summit and has request youth & start-ups to join this programme. Vehicle scrapping will help phase out unfit and polluting vehicles in an environment friendly manner.
PM Modi also said that the govt aims to create a viable circular economy and bring value for all stakeholders while being environmentally responsible.
Narendra Modi mentioned in Tweet :
“The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme.”
Government expects to generate employment about 35,000 people at vehicle fitness centres and scrapyards and a collective investment of Rs 10,000 crore.
The vehicle fitness test cost will depend on the type of vehicle.
It will cost Rs 300-400 and for a commercial vehicle it could be Rs 1,000-1,500.
Giridhar Aramane, Secretary in the Road Transport & Highways Ministry Said :
We propose to scrap vehicles, which are 15 years and over, own by the Central and state governments by April 2022,”
“From 2023 onwards, heavy commercial vehicles need to be scrapped if they do not conform to the fitness level prescribed under the rules. For personal vehicles, we plan to implement this from June 2024 onwards.”
Vehicle scrappage policy is likely to give a major boost to the metal recycling business.
The report also said that the policy is likely to affect major changes in the Indian automotive industry.
The policy mandates that passenger vehicles older than 15 years and commercial vehicles older than 20 years will have to be scrapped mandatorily if they fail fitness and emission tests.
Policy is likely to positively impact the sales of new cars and pave way for more opportunities for the Indian auto sector.
As of April 2021 there were 1.7 million old medium and heavy commercial vehicles plying on the Indian roads according to the Ministry of Road Transport and Highways.
The report cite that industry believes that the policy has the potential to generate demand for new vehicles.
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