Thursday 19 May 2022
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Vehicle Scrappage Policy launched: Why it is crucial

The Vehicle Scrappage Policy aims at creating an eco-system for phasing out unfit, polluting vehicles in an environment-friendly and safe way

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Prime Minister Narendra Modi on Friday introduced the Vehicle Scrappage Policy. The Indian Prime Minister took to Twitter to inform of the launch and urged youth and start-ups to join this programme.

“The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth and start-ups to join this programme,” tweeted Prime Minister Modi.

The prime minister said that the new policy would help also in timely phasing out the unfit and polluting vehicles in an eco-friendly manner. “Vehicle scrapping will help phase out unfit and polluting vehicles in an -friendly manner. Our aim is to create a viable #circulareconomy and bring value for all stakeholders while being environmentally responsible,” he said

Earlier this week, Union Minister Nitin Gadkari had announced that the prime minister would introduce the National Automobile Scrappage Policy during the ‘Investors Summit for setting up Vehicle Scrapping Infrastructure’ in Gandhinagar, Gujarat.

The prime minister informed that the new policy will attract investments of around ₹ 10,000 crores. Alang in Gujarat may also come out to be the hub for vehicle scrapping, he added. 

The policy aims to build scrapping infrastructure in the form of Registered Vehicle Scrapping Facilities and Automated Testing Stations in India.

Speaking at the event in Gujarat, Gadkari said that the scrappage policy was likely to reduce raw material costs by around 40%. The policy will reduce India’s dependency on scrap steel (about worth Rs 22,000 crore) which is imported from the foreign market. The minister stressed that the policy would help contribute to making India an industrial hub of automotive manufacturing.

The Vehicle Scrappage Policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environmentally friendly and safe manner. The policy intends to create scrapping infrastructure in the form of Automated Testing Stations and Registered Vehicle Scrapping Facilities across the country.

During the launch, Union minister mentioned that around 1 crore vehicles are there without any valid fitness. He also said that the policy is based on fitness and not the age of vehicles.

The prime minister stated that the scrappage policy will help modernise the vehicle fleet and will ensure scientific disposal of old polluting vehicles.

The Vehicle Scrappage Policy is a move to generate wealth from waste, Prime Minister Modi said. “The policy will give a new identity to India in the mobility and auto sector. It will play a major role in removing unfit vehicles from our roads in a scientific manner. It will modernise the vehicular population on our city roads,” he said further.

The prime minister said that the union government was promoting a circular economy with an aim to developing a sustainable and -friendly front.

A circular economy is one where products are designed for durability, reuse and recyclability.

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