The National Vehicle Scrappage Policy allows for the phasing out of older and unsuitable vehicles and the introduction of new, less polluting vehicles
The National Vehicle Scrappage Policy allows for the phasing out of older and unsuitable vehicles and the introduction of new, less polluting vehicles
Union Minister Nitin Gadkari said on May 7 that his goal was to build at least one car scrapping facility within 150 kilometers of each city center, while stressing that the country has the potential to become a vehicle scrapping hub for the entire South Asian region .
Speaking at an event here, Mr Gadkari said the National Vehicle Scrappage Policy is a key initiative in India’s transport and sustainability sector and this will allow for the gradual removal of older and unsuitable vehicles and the gradual introduction of new, less polluting vehicles.
“My goal is to develop a vehicle scrapping center 150 km from any city center,” said the Minister of Roads and Motorways.
Mr Gadkari noted that the Ministry of Road Transport and Highways has designed the vehicle scrapping policy to allow investors of all shapes and sizes to set up scrapping centers.
“By developing a large number of vehicle scrapping centers, we can also develop multiple authorized vehicle scrapping unit collection centers in a city, which will be authorized to deregister a vehicle and issue certificates of depot,” he said.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021, saying it will help phase out unsuitable and polluting vehicles and also promote a circular economy.
He had also said that the material recycling sector employs four million people directly and indirectly and that number is expected to rise to five million by 2025.
Speaking at Friday’s event, Mr Gadkari said: “India has the potential to become a hub for vehicle scrapping across the South Asian region. We can import a large number of old vehicles from Bangladesh, Bhutan, Myanmar, the Maldives, Nepal and Sri Lanka for scrapping in our country.” He also noted that establishing a circular economy to extract the maximum value from scrap is a challenge or scrap vehicles.
“The technology used for scrapping will be critical to the economics of scrapping and recycling,” he said, adding that equipment can be installed at the scrapping unit to maximize resource recovery or equipment dismantling.
Mr. Gadkari also called on metal recycling industry leaders to open vehicle scrapping centers in 112 emerging districts in the country to create more job opportunities in those districts.
Under the new policy, which takes effect on April 1, 2022, the center has said states and union territories will provide up to a 25 percent tax rebate on road tax for vehicles purchased after old vehicles have been scrapped.
The directive, announced in the 2021-22 Union budget, requires suitability tests after 20 years for passenger cars, while commercial vehicles require it after 15 years.
