Speaking at the 60th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM), Union Minister of Environment, Forest & Climate Change Prakash Javadekar said the Government of India will soon announce the scrappage policy. Answering questions during the Reviving Demand session, Javadekar said that "the scrappage policy has been on the agenda and the government is working on it actively". He also went on saying that soon we will hear an official announcement regarding the scrappage policy. However, the Minister did not go into details about the timeline for the announcement.
The scrappage policy has been in discussion for a few years now. Earlier this year, a bench headed by National Green Tribunal Chairperson Justice Adarsh Kumar Goel said a proper mechanism to set up authorised recycling centres compliant with environmental norms was an urgent need given a large number of ''End of Life Vehicles'' (ELV). The green panel had said the response of the MoRTH is very unsatisfactory and lacking insensitivity. "There is no tangible explanation for the long delay in issuing the necessary notification. Making allowance for the pandemic, we grant further time of two months for issuing requisite notification," the bench said.
However, now, the assurance from Union Minister Prakash Javadekar on the imminent arrival of the scrappage policy is certainly a positive move. Earlier this year, in May 2020, Union Minister of Road Transport and Highways, Nitin Gadkari had made a similar assurance saying, "The scrapping policy will be finalised soon. It is going to boost the industry. It is going to reduce the production cost. Yesterday also, I had a discussion with the Secretary and we will make it as early as possible."
SIAM has been urging the government to formulate a scrappage policy to phase out older and polluting vehicles. The scrappage policy is part of the stimulus package requested by OEMs for the auto sector's revival, in addition to reduction in the GST rates.