The National Vehicle Scrappage Policy will enable weeding out of old and unserviceable vehicles and introduction of new low pollution vehicles in a phased manner.
The National Vehicle Scrappage Policy will enable weeding out of old and unserviceable vehicles and introduction of new low pollution vehicles in a phased manner.
Union Minister Nitin Gadkari on May 7 said that he aims to develop at least one automobile scrapping facility within 150 km from each city centre, while the country has the potential to become the vehicle scrapping hub of the entire South Asian region.
Addressing an event here, Shri Gadkari said that the National Vehicle Scrappage Policy is a significant initiative in the Indian Transport and Sustainability sector, and it would enable the removal of old and unsuitable vehicles and the introduction of new low-pollution vehicles in a phased manner. Will make ,
“My aim is to develop a vehicle scrapping center within a reach of 150 km from all the centers of the city,” the Road Transport and Highways Minister said.
Shri Gadkari said that the Ministry of Road Transport and Highways has designed the vehicle scrapping policy in such a way that investors of all types and sizes are allowed to come and set up scrapping centres.
“By developing a large number of vehicle scraping centres, we can also develop multiple authorized collection centers of vehicle scrapping units in a city, which will have the authority to de-register the vehicle and issue certificates of deposit,” he added.
Prime Minister Narendra Modi launched National vehicle scrappage policy in August 2021 And said that it will help in the phased removal of unsuitable and polluting vehicles and will also promote a circular economy.
He had also said that the material recycling sector employs four crore people directly and indirectly and this number is expected to go up to five crore by 2025.
At Friday’s event, Mr. Gadkari said, “India has the potential to become the vehicle scrapping hub of the entire South Asian region. We can import a large number of used vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka. Scrapping in our country.” He also observed that it is a challenge to establish a circular economy to recover maximum value from scrap or end-of-life vehicles.
“The technology used for scrapping will be a game changer in deciding the economics of scrapping and recycling,” he said, adding that equipment can be installed in the scraping unit to remove raw materials or eliminate waste.
Shri Gadkari also asked the leaders of metal recycling industry to open vehicle scrapping centers in 112 aspirational districts of the country to generate more employment opportunities in these districts.
Under the new policy, which is effective from April 1, 2022, the Center has said that states and union territories will provide up to 25 per cent tax exemption on road tax for vehicles purchased after scrapping old vehicles.
Announced in the Union Budget 2021-22, the policy provides for a fitness test after 20 years for private vehicles, while commercial vehicles will require it after completion of 15 years.