Vehicle scrappage policy could come by September end: Nitin Gadkari1 min read . Updated: 05 Sep 2020, 01:22 PM IST
- The vehicle scrappage policy is expected to entail scrapping of old vehicles in exchange for some incentives for consumers while setting up vehicle recycling clusters to boost use of recycled materials thereby cutting the cost of raw materials
MUMBAI: The much-awaited vehicle scrappage policy is in its final stages of approval and will be rolled out within a month, road transport and highways minister Nitin Gadkari said on Saturday.
“The vehicle scrapping policy is very important for the revival of the auto industry. I assure you that the scrappage policy is in its last stages of approval and it will come within a month. It may even come within this month-end," Gadkari said while speaking on the sidelines of the 60th annual session of the Automotive Component Manufacturers Association of India (Acma).
“We will clear this policy with the approval of the highest authorities and we will definitely going to open up this policy, which can be a win-win for Indian manufacturers," he said, apologizing for the delay in rolling out the policy.
The vehicle scrappage policy is expected to entail scrapping of old vehicles in exchange for some incentives for consumers while setting up vehicle recycling clusters to boost use of recycled materials, thereby cutting cost of raw materials.
The proposed policy is seen as a growth driver in boosting demand for new vehicles at a time when the economy is hit by weak consumer sentiment amid covid-19 led slowdown in the broader economy. Mint had earlier reported that the vehicle scrappage policy would focus on eliminating the fleet of old polluting commercial vehicles plying on the country’s roads.
Gadkari also reiterated that India has the potential to become a hub for automotive manufacturing globally in the next five years.
Appealing to the auto industry stakeholders to reduce import dependency, he said the government plans to increase import duties on certain imported parts in near future.