The Society of Indian Automobile Manufacturers (SIAM) on Thursday welcomed draft guidelines issued by the Ministry of Road Transport and Highways for setting up authorised vehicle scrapping facilities in the country.
The guidelines have been issued for protection of environment besides promotion of a legally-compliant vehicle dismantling and scrapping industry. The ministry will accept comments until November 15.
"The automobile industry whole-heartedly supports the vehicle scrappage initiative," said SIAM President Rajan Wadhera. "The draft guidelines will help in establishing organised vehicle scrapping facilities and lead to increase in latent demand for end-of-life vehicles available for scrapping."
Wadhera said such facilities will operate in an environmentally-friendly manner having essential infrastructure and necessary approvals from government departments.
"The vehicle scrappage initiative of the government will not only help in removing old and polluting vehicles from roads, but also increase the demand for new vehicles having better emission technology, meeting superior safety standards and at the same time lead to savings of fuel, foreign exchange and raw material," he said in a statement.
Wadhera said the industry also awaits an incentive-based vehicle scrappage policy from the government, which will help fleet modernisation on a regular basis.
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