Union Minister, Nitin Gadkari, on Thursday said India's own vehicle scrappage policy is likely to be finalised soon. According to a report in PTI, India will soon get its vehicle scrappage policy. The highly-awaited policy is awaiting a final clearance from the finance minsitry. The policy will focus on scrapping old polluting vehicles plying in the country. Once approved, the policy will be applicable on all vehicles including two-wheelers and three-wheelers. The Union Minister also mentioned that this policy will help boost the automobile sector and it will also help in reducing the production cost. The vehicle scrappage policy was earlier sent for an additional consultation with stakeholders on the direction of the Prime Minister's Office (PMO).
The Union Minister also added that the transport ministry was ready to extend the compliance timelines on regulations under the Motor Vehicles Act, excluding the vehicles affecting road safety.
In a video conference with the members of SIAM (Society of Indian Automobile Manufacturers), over the impact of COVID-19 on the automobile sector the Union Minister said, "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."
The automobile players present in the meeting urged the ministry to extend the timeline for the registration of BS-IV vehicles sold before March 31 along with other relaxations.
Gadkari also claimed that once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping such as steel, aluminium and plastic are generally recycled, which will bring down the prices of automobiles by 20 to 30 per cent.
In a bid to increase demand for electric vehicles, the government proposed amendments to motor vehicle norms in July 2019 to allow scrapping of vehicles older than 15 years. As per a draft notification, the government had proposed renewal of fitness certificates for vehicles older than 15 years by every six months instead of one year.
The government also proposed that the newly purchased motor vehicles can be exempted for payment of fees for a registration certificate and assignment of the new registration mark, if the customer gives scrapping certificate of the previous vehicle of the same category issued by the authorised scrapping centre.