MUMBAI: The long-awaited vehicle scrapping policy is in the final stages of approval and will be implemented within a month, Minister of Highway and Highway Transport Nitin Gadkari said on Saturday.
“The policy of scrapping vehicles is very important for the reactivation of the automotive industry. I assure you that the scrapping policy is in its final stages of approval and will arrive within a month. It may even arrive within this month, “Gadkari said while speaking on the sidelines of the 60th annual session of the Indian Automotive Component Manufacturers Association (Acma).
“We will erase this policy with the approval of the highest authorities and we will definitely open this policy, which may be beneficial to Indian manufacturers,” he said, apologizing for the delay in implementing the policy.
The vehicle scrapping policy is expected to involve scrapping old vehicles in exchange for some incentives for consumers while establishing vehicle recycling pools to boost the use of recycled materials, thereby reducing the cost of raw materials.
The proposed policy is seen as a growth engine to boost demand for new vehicles at a time when the economy is hit by weak consumer confidence amid the COVID-19 slowdown in the broader economy. . mint had previously reported that the vehicle scrapping policy would focus on eliminating the fleet of old polluting commercial vehicles that circulated on the country’s roads.
Gadkari also reiterated that India has the potential to become a global car manufacturing hub in the next five years.
Appealing to auto industry stakeholders to reduce dependence on imports, he said the government plans to increase import tariffs on certain imported parts in the near future.
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