Union Minister, Nitin Gadkari, on Friday said that the Government is likely to approve the highly awaited policy to scrap 15-year old vehicles. According to a report from PTI, India will get its own vehicle scrappage policy. In a bid to push for the adoption of electric vehicles, the Government of India proposed amendments to motor vehicle standards to allow scrapping of vehicles older than 15 years. The Road Transport and Highway Minister said, "We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy."
While addressing ‘Atmanirbhar Bharat Innovation Challenge 2020-21' event, the Minister said to PTI that this policy is for scrapping of vehicles that are over 15-years old, including cars, trucks and buses. However, the final call on this will be taken by the Prime Minister's Office, and PMO had earlier send proposed policy for a fresh round of consultations with stakeholders.
This remark from the Minister comes amid reports that the government could announce the vehicle scrappage policy that will boost automobile demand by phasing out old and polluting vehicles. Once the vehicle scrappage policy is approved, India will emerge as an automobile hub and there will also be a reduction in the prices of automobiles, said Nitin Gadkari.
He added, "We will take scrap from all over the world and here we will make an industry where we can use all new material and the cost will be less... industry will be more competitive...we will get more export orders."
Moreover, he said the automobile industry's turnover will get a boost which is around ₹ 4.5 lakh crore with over 1.45 lakh crore of exports.
During an interaction with the media after presenting Budget 2020-21, Finance Minister Nirmala Sitharaman said, "Scrappage policy is in the works ... I would wait for the concerned ministries also to fine-tune everything and tie up the loose ends and then come to a stage where it can be announced by the ministry."