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Home / News / India /  Vehicle scrappage policy in its final stage, says Nitin Gadkari

NEW DELHI : The long-delayed vehicle scrappage policy is in its last lap and will be finalized soon, road transport and highways minister Nitin Gadkari said on Thursday.

Gadkari was speaking at the Auto Expo 2020 in Greater Noida.

The proposed policy that has been in works for over six months is seen as an attempt by the government to boost automobile demand, which has been hit by weak consumer demand amid a slowdown in the broader economy. It is also expected to remove old, polluted vehicles off the roads.

On Tuesday, finance minister Nirmala Sitharaman said that several round of inter-ministerial consultation pertaining to the scrappage policy has already been done and it is close to finalization.

“I have cleared it from my end," Gadkari said.

The scrappage policy, thereafter will have to get the Union Cabinet’s nod.

In August, the finance minister had announced several steps for the automobile sector, including a scrappage policy for automobiles, aimed at increasing production and capacity utilization.

The policy is expected to help the automobile industry as it will reduce the need to import of raw materials such as copper and aluminum, which can be extracted from scrap, the minister said.

Separately, the road ministry issued draft guidelines in October to set up vehicle scrapping centres in the country, to protect the environment and promote a legally-backed dismantling and scrapping industry. “The final guidelines are being vetted by the law ministry," a senior government official told Mint.

The minister further said that the government has been trying to push clean, alternative fuels such as ethanol, methanol as well as bio diesel, as one of its ways to reduce pollution

He said that a Cabinet note has been floated to introduce 15% blending of methanol into petrol and diesel, move when implemented, will reduce import bill of fuel as well lower vehicular pollution.

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