New vehicle scrappage policy to attract investments worth Rs 10,000 crore

Launching the new National Automobile Scrappage Policy at an investors' summit held by the Gujarat government, Prime Minister Narendra Modi said that the new policy would attract investments worth Rs 10000 crore.

Addressing virtually the Investor Summit that was held in Gandhinagar on Friday, Modi said that the government aims to remove unfit and polluting vehicles in a scientific manner through the policy.

"The policy is an important link to achieve the circular economy of waste to wealth. It will also energise India's auto sector and metal sector under the principles of reuse, recycle and recover," he said.

Modi also said that a scrapping certificate would be issued for a vehicle, based on which there would be no registration fees required for the new vehicle purchase as part of the policy.

Moreover, the government was also looking to provide some concessions on road tax. "The families would also be able to save on costs of maintenance, repair of the vehicle with better fuel efficiency. This policy would benefit common-man in all manner," Modi said in his address.

Talking about scrap import, Modi said that India had to import scrap steel worth Rs 23000 crore last year since scrapping in the country is not as productive and carries zero energy recovery. Also, the new scrappage policy recognises the workers at scrapping facilities and small businessmen, who can become agents for authorised scrapping centers.

Citing Alang ship recycling yard in Gujarat, Modi said that the auto and metal industry is set to get a big boost with the policy, which would make scrap steel available locally. "Gujarat has witnessed the benefits of ship recycling, while it can also become a big hub of auto scrapping."

Meanwhile, Union Transport Minister Nitin Gadkari, in his address, said that India currently has 10 million cars without valid fitness parameters, thereby adding to pollution and fuel costs.

"Therefore, we thought of bringing a scrappage policy. Replacing old vehicles with new ones will benefit the environment by 10-12 per cent. The new scrappage policy will generate direct and indirect employment for about 50,000 people," said Gadkari.