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Vehicle scrappage policy will bring in funds, jobs: Modi

Prime Minister Narendra Modi lamented the fact that India had to import  ₹23,000 crore worth of scrap steel during the last year as scrapping is not productive and the country is not able to recover energy and rare earth metals from scraps (PTI)Premium
Prime Minister Narendra Modi lamented the fact that India had to import 23,000 crore worth of scrap steel during the last year as scrapping is not productive and the country is not able to recover energy and rare earth metals from scraps (PTI)

  • Finance minister Nirmala Sitharaman announced the policy in her February budget for FY22 to phase out unfit, polluting vehicles

NEW DELHI: Prime Minister Narendra Modi on Friday said India’s new vehicle scrappage policy has the potential to generate fresh investments of more than 10,000 crore, creating thousands of jobs.

Finance minister Nirmala Sitharaman announced the policy in her February budget for FY22 to phase out unfit, polluting vehicles.

The policy is an attempt by the government to boost automobile demand that has been hit by weak consumer sentiment amid a slowdown in the broader economy.

“The new scrappage policy is an important link in the circular economy and the waste-to-wealth campaign. This policy also reflects our commitment to reduce pollution in the cities of the country and protect the environment and fast development. This policy, by following the principle reuse, recycle and recovery, will also promote the country’s self-reliance in the auto sector and in the metal sector," Modi said at an investor summit in Gujarat.

The summit is being organized to invite investment for setting up vehicle scrapping infrastructure under the voluntary vehicle-fleet modernization programme. It will also also focus on the synergies presented by the ship-breaking industry at Gujarat’s Alang for the development of an integrated scrapping hub.

Launching the scrappage policy, Modi said that the general public will benefit greatly from this scheme.

“The first advantage will be that a certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle. Along with this, he will also be given some exemption in road tax. The second benefit will be that the maintenance cost, repair cost, fuel efficiency of the old vehicle will also be saved in this. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on our health," the Prime Minister said.

Modi said that this new policy will give new energy and security to the scrap-related sector.

“Employees and small entrepreneurs will get a safe environment and will get benefits like the employees of other organized sectors. They will be able to work as collection agents for the authorized scrapping centres," he added.

Modi said India had to import 23,000 crore worth of scrap steel during the last year as scrapping is not productive, and the country cannot recover energy and rare earth metals from scrap.

The Prime Minister highlighted the unprecedented work done in the energy sector. India is now among the front-ranking countries in the field of solar and wind energy. Modi emphasized that the waste-to-wealth campaign is being linked with Swachata and Aatmnirbharta.

Modi said that be it ethanol, hydrogen fuel or electric mobility, the active participation of the industry is very important.

“From R&D to infrastructure, the industry has to increase partnership. The industry needs a roadmap for Aatmanirbhar Bharat in 25 years. Whatever help you need for this, the government is ready to give it," he assured.

The Prime Minister said that today when the country is moving towards clean, congestion-free and convenient mobility, there is a need to change the old approach and practices. “Today’s India is committed to providing global standard safety and quality to its citizens, and this thinking is behind the transition from BS-4 to BS-6," he added.

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