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Highway and Highway Transport Minister Nitin Gadkari said Thursday that the ministry is implementing the long-delayed vehicle scrapping policy to support the national auto industry amid the covid-19 pandemic.
“I have been trying to follow the scrapping policy for the past two years. We need the cooperation of other ministries, stakeholders. I have told the secretary to follow up as soon as possible. This is one of the steps to boost the industry because it will reduce production, “Gadkari said in a video conference with the Society of Indian Car Manufacturers (SIAM).
“I will find out what the obstacles are. We will clear it and move on, “he said.
The vehicle scrapping policy, which awaits approval from the finance ministry, aims to eliminate the fleet of polluting old vehicles and increase demand.
The coronavirus-led crisis has only made matters worse for the local auto sector that was already struggling due to weak demand. The imposition of the national blockade had halted all economic activities, adding to the problems of the companies. The auto industry continues to expect lukewarm demand in the short term, as it believes that business normality will not be restored immediately, even if the blockade is lifted entirely.
The proposed policy got new momentum in August last year, even as the auto sector faltered under the pressure of the slowdown. Separately, the highway ministry issued draft guidelines in October to establish vehicle scrapping centers in the country to protect the environment and promote a legally backed scrapping and scrapping industry.
Last year, Finance Minister Nirmala Sitharaman announced several steps for the automotive sector, including a vehicle scrapping policy, aimed at increasing production and capacity utilization.
Regarding unsold inventory that meets Bharat’s Stage IV, the minister said the government is bound by the Supreme Court’s verdict on it. However, at the request of the industry, he will examine the matter again. In March, the apex court relaxed the March 31 deadline to settle sales and vehicle registrations that meet BS IV emission standards amid a nationwide blockade.
The government will also analyze the suggestions of the automotive industry and will extend the deadlines, whenever possible, without compromising road safety regulations.
Transport Secretary Giridhar Armane said the Prime Minister’s Office and the Ministry of Finance are working on a comprehensive package for all industries, including micro, small and medium-sized enterprises.
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