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Vehicle scrapping plan will create jobs, lower costs: Nitin Gadkari

The move will lower the price of auto components by as much as 40 per cent, Gadkari said

Nitin Gadkari  | Vehicle scrap policy | Budget 2021

Press Trust of India  |  Wardha 

Nitin Gadkari
Union Road Transport and Highways Minister Nitin Gadkari

The voluntary scrapping policy for old and unfit vehicles announced in the Union Budget for 2021 -22 will help create jobs for 25 lakh people and lower the price of auto components by as much as 40 per cent, Union Road Transport and Highways Minister said here on Saturday.

In Wardha to attend some programmes, the minister said moves initiated by the Centre will make India an automobile manufacturing hub in five years.

Vehicles older than 15 years are not fuel efficient and also have high maintenance costs, and the scrapping policy will help overcome these problems, he added.

Gadkari said Rs 50 crore will be allotted by the Union MSME ministry to set up research and training facilities in the Mahatma Gandhi Institute for Rural Industrialisation (MGIRI).

Efforts are on to set up a logistics park in Sindi and work on Concor's dry port was also progressing, he added.

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First Published: Sat, February 06 2021. 20:30 IST