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Prime Minister Narendra Modi has launched the Voluntary Vehicle Fleet Modernisation Programme, or better known as the automotive scrappage policy. The PM launched the policy virtually at the Investor Summit in Gujarat. The vehicle scrappage policy has been in the works for a while now, and it finally gets the green light from the government. The PM said that the policy will bring in investments of around ₹ 10,000 crore. He also said that Alang in Gujarat can become the hub for vehicle scrapping.
Adding further, the PM in a series of tweets wrote, "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 & start-ups to join this programme."
"Vehicle scrapping will help phase out unfit & polluting vehicles in an environment-friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible."
Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible.
— Narendra Modi (@narendramodi) August 13, 2021
He also said that the current method of scrapping materials is not productive.
Speaking about the benefits of the scrappage policy for the common man, PM Modi said, "Firstly, a certificate will be given on scrapping of the old car, which will ensure that an individual does not have to pay registration fees while buying a new car. He will also get a discount on road tax. Secondly, a person will save money on maintenance cost, repair cost and fuel efficiency of the old car. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on our health."
“A vehicle will not be scrapped just because it is old. Fitness tests will be conducted at scrappage centres and only after that will it be scrapped, that too, as per scientific methods,” PM Modi said, as the fifth and final benefit.
PM Modi said that owners scrapping their cars will not have to pay registration fees when buying a new car. They will also get a discount on road tax.
“A vehicle will not be scrapped just because it is old. Fitness tests will be conducted at scrappage centres and only after that will it be scrapped, that too, as per scientific methods,” PM Modi said.
Speaking at the event in Gujarat, Union Minister for Road Transport & Highways (MoRTH) Nitin Gadkari said that the scrappage policy likely lead to a cut in raw material costs by around 40 per cent. About ₹ 22,000 crore worth of scrap steel is imported in the country, and scrapping old vehicles will help reduce dependency. The minister also said that the policy will help the country become an industrial hub of automotive manufacturing.
The government will also set-up testing centres across all districts using the public-private partnership (PPP) model, Gadkari said further.
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