Prime Minister Narendra Modi on Friday launched the much-awaited National Vehicle Scrappage Policy and said that it would help in phasing out the unfit and polluting vehicles across the country and promote a circular economy.
Addressing the Investor Summit in Gujarat via video conference, he said, “Vehicle Scrappage Policy will play a big role in the modernisation of the vehicular population in the country, removing unfit vehicles from the roads in a scientific manner.” The Summit was organised to invite investment for setting up vehicle scrapping infrastructure under the Voluntary Vehicle-Fleet Modernisation Programme or the Vehicle Scrapping Policy.
Union Minister for Road Transport and Highways Nitin Gadkari and Gujarat Chief Minister Vijay Rupani were also present on the occasion.
“Those who will scrap their old vehicle will receive a certificate and it will benefit them while buying a new vehicle,” said Modi. These certificates, he added, would also ensure that apart from getting discounts while buying new vehicles, people will get benefits on payable taxes and registration charges. All vehicles that are 15 years and older will be included under this scrap policy.
People who discard their old vehicle under scrap policy will receive a certificate and they will be given a 25 percent relief in road tax on purchasing a new vehicle. For commercial vehicles, the percentage of relief will be 15 percent. Through the certificate, people will also get a rebate of up to 25 percent on motor vehicle tax.
The Centre’s newly announced policy will come into effect from 1 October 2021. And the country’s first scrap plant will be established in Alang, Bhavnagar.
Prime Minister Modi said that the new policy ahead of the 75th Independence Day is a significant step towards attaining the great goals of a self-reliant India. This new policy will bring in an investment of over Rs 10,000 crore and the next 25 years will be vital for the country as the policy is very much launched keeping the environment in consideration, he added.
While announcing the National Scrap Policy, PM Modi gave an example of an old tradition of Gujarat houses. He said, “Although the concept of recycling is not very new to the world, people have realised its importance in the last few years. But people in Gujarat have been practising recycling products for years. Grandmothers have been sewing clothes for generations and from these clothes, they make hand-stitched rugs which they use during winter.”
PM Modi stressed the fact that under the new policy, vehicles will not be scrapped merely on the basis of age. “Vehicles will be scientifically tested through authorized, automated testing centres. Unfit vehicles will be scrapped scientifically. It will ensure that registered vehicle scrapping facilities all over the country are technology driven and transparent,” he said.
He lamented the fact that we had to import Rs 23,000 crore worth of scrap steel during the last year as our scrapping is not productive and we are not able to recover energy and rare earth metals. He informed that continuous steps are being taken to make Indian industry sustainable and productive for speeding the process of Aatmanirbhar Bharat. He emphasised that it is our effort to reduce dependence on imports with regard to the value chain of auto manufacturing.
As soon as this policy is implemented, millions of vehicles across the country will be scrapped. According to the report presented in the Lok Sabha, the number of vehicles that are 15-20-year-old in Gujarat is 10,19,898, while the number of vehicles older than 20 years is 5,01,979. These millions of vehicles will be scrapped as soon as the scrap policy comes into action. According to the new policy rules, vehicles that were purchase before the year 2005 will be scrapped.