Government. aims to develop vehicle dismantling facilities within 150 km of city centers


India has the potential to become the hub for vehicle scrapping across South Asia: Gadkari

India has the potential to become the hub for vehicle scrapping across South Asia: Gadkari

Union Minister Nitin Gadkari said on Saturday his goal was to set up at least one car scrapping facility within 150 km of each city center, while affirming that the country has the potential to become a vehicle scrapping hub for the entire South Asian region.

Speaking at an event hosted by the Material Recycling Association of India (MRAI), Mr Gadkari said the National Vehicle Scrappage Policy is a key initiative in India’s transport and sustainability sector and would allow for the removal of older and unserviceable vehicles and the introduction of new, lower-emission vehicles in stages.

“My goal is to develop a vehicle scrapping center 150 km from any city center,” said the Minister of Roads and Motorways.

He pointed out that his ministry has designed the vehicle scrapping policy to allow investors of all shapes and sizes to jump in and 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 introduced the National Vehicle Scrappage Policy in August last year, saying it would help phase out unsuitable and polluting vehicles and also promote a circular economy.

He had also said that the materials recycling sector employs 4 million people directly and indirectly and that this number is expected to increase to 5 million by 2025.

Speaking at Saturday’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.”

“The technology used for scrapping will have a major impact on the economics of scrapping and recycling,” he said, adding that the equipment could be installed in the scrapping unit to maximize raw material 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 went into effect on April 1, the center said states and union territories would give up to a 25% tax rebate on road tax on 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.

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