Nitin Gadkari Announced the Long-awaited Vehicle Scrappage Policy
Posted By : Amol Mishra | Date : Apr 8 2021 6:25 AM
The Automobile Industry of India made headlines on Thursday, when Nitin Gadkari, the Minister for Road Transport & Highways, announced the much-awaited VEHICLE SCRAPPAGE POLICY in the Lok Sabha.
Personal vehicles older than 20 years are subject to de-registration beginning June 1, 2024, according to the Policy. If, on the other hand, the vehicle fails an automated fitness test or has its registration renewed before the deadline, it will be automatically ruled out for the duration of the specified period. Beginning April 1, 2023, the proposal would include commercial vehicles that are 15 years old or older.
What Automobile Industry Leaders have to Say!
The Automobile Giants of India were in talks about the New VEHICLE SCRAPPAGE POLICY. In acknowledgement of the policy, the Industry Leaders revealed that the new policy will not get rid of the polluting vehicles from the roads, but will also lead to the formation of a recycling industry solely dedicated to Automobiles, and will also bring investments and new job opportunities into the industry.
RC Bhargava, the former CEO and Current Chairperson of Maruti Suzuki raised a point against Scrappage Policy, saying, ‘If a vehicle is unfit and it has to be scrapped where is the need for giving the person any incentives to buy a new vehicle? He has an unfit vehicle which should not be allowed to use because it is a hazard for everybody.’
What’s in for the Vehicles already on the Policy RADAR?
The implementation of the policy will set about by rolling out the mandatory fitness certifications for personal vehicles present in the 10 most polluting cities of the country. The vehicles that are absolutely inside the deregistration front, can expect to get relief in GST as compensation for scrapping their old vehicles.
The Glimpse of the Future Post Policy Implementation
Gadkari expressed optimism about the policy in many ways. As per reports, he disclosed that the policy is just a part of the bigger picture of substituting the old vehicles with new technological advanced, clean energy vehicles. The idea eventually will put the e-mobility sector in front. He added that the policy can be anticipated to bring investment worth 10,000 crores and will create around 35,000 jobs.
Soon when the policy gets into implementation, the foremost thing needed will be adequate infrastructure for scrapping old vehicles that fail to obtain the certification. To deal with it, the ministry is in the process of drafting a norm for setting up registered vehicle scrapping centres.