Centre nod to vehicle scrappage policy likely soon: Nitin Gadkari

The much-awaited policy to scrap 15-year old vehicles is likely to get government nod soon, Union Minister Nitin Gadkari said on Friday.

On July 26, 2019, the government proposed amendments to motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles.

"We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy," the Road Transport and Highways Minister said.

The policy is for scrapping of vehicles which are more that 15 years old and includes cars, trucks and buses, the Minister said addressing the "Atmanirbhar Bharat Innovation Challenge 2020-21" event.

Gadkari's remarks come amid reports that the upcoming budget may unveil the vehicle scrappage policy that aims to boost automobile demand by phasing out old and polluting vehicles.

A final call in this regard, however, will be taken by the Prime Minister's Office. The PMO had earlier sent the proposed policy for a fresh round of consultation with stakeholders.

Gadkari said once the policy is approved, India will become a automobile hub and there will also be reduction in the prices of automobiles.

He said recycled material from old vehicles will help reduce the prices.

"We will take scrap from all over the world and here we will make an industry where we can use all new material and the cost will be less... industry will be more competitive...we will get more export orders," he added.

He said the automobile industry's turnover, which is Rs 4.5 lakh crore with Rs 1.45 lakh crore exports, will get a boost.

Earlier, Finance Minister Nirmala Sitharaman had said that a policy for scrapping of old vehicles "is in the works" and will be announced after ministries concerned "fine tune" it.

"Scrappage policy is in the works ... I would wait for the concerned ministries also to fine tune everything and tie up the loose ends and then come to a stage where it can be announced by the ministry," Sitharaman had said in an interaction with the media after presenting Budget 2020-21.

In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road.

A committee of secretaries (CoS) recommended to the ministry redesigning of the scheme for greater participation of states with partial support from the Centre.

The CoS had suggested that the scheme may dovetail a calibrated and phased regulatory approach for capping the life of vehicles together with stricter implementation of emission norms and accordingly a revised consultation paper got in-principle nod of the PMO.