You are here: Home » Current Affairs » News
Business Standard

Govt aims to develop vehicle scrapping facilities within 150 kms of cities

Gadkari noted that the road transport and highways ministry has designed the vehicle scrapping policy in a way that allows all types and sizes of investors to come and establish scrapping centres

Ministry of Road Transport and Highways | Vehicle scrapping | Nitin Gadkari

Press Trust of India  |  New Delhi 

Nitin Gadkari
Union Minister for Road Transport and Highways Nitin Gadkari (Photo: PTI)

Union minister on Saturday said his aim is to develop at least one automobile scrapping facility within 150 kilometres from each city centre, while asserting that the country has the potential to become a hub of the entire South Asian region.

Addressing an event here, Gadkari said the National Vehicle Scrappage Policy is a key initiative in the Indian transport and sustainability sector, and this will enable the removal of older and unfit vehicles and introduction of new lesser-polluting vehicles in a phased manner.

"My aim is to develop a centre within the reach of 150 km from all the city centres," the road transport and highways minister said.

Gadkari noted that the road transport and highways ministry has designed the policy in a way that allows all types and sizes of investors to come and establish scrapping centres.

"Developing a large number of vehicle scrapping centres, we can also develop multiple authorised collection centres of vehicle scrapping units in one city, which will have the authority to deregister a vehicle and issue deposit certificates," he said.

Prime Minister Narendra Modi had launched the National Vehicle Scrappage Policy in August last year and had said it will help phase out unfit and polluting vehicles and also promote a circular economy.

He had also said that the material recycling sector gives direct and indirect employment to 4 crore people and this number is expected to go up to 5 crore by 2025.

At Friday's event Gadkari said: "India has potential to become a vehicle scrapping hub of the entire South Asian region. We can import a large number of old vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka for scrapping in our country."

The minister also observed that there is a challenge to establish a circular economy to recover maximum value from the scrap or end-of-life vehicles.

"The technology used for scrapping will be the game changer in deciding the economics of scrapping and recycling," he said, adding that the equipment can be installed at the scrapping unit to maximise raw material extraction or dismantling equipment.

Gadkari also asked metal recycling industry leaders to open vehicle scrapping centres in 112 aspirational districts of the country to create more employment opportunities in these districts.

Under the new policy which is effective from April 1, 2022, the Centre has said states and Union Territories will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, May 07 2022. 14:42 IST