Vehicle scrappage policy

 

The much-awaited vehicle scrappage policy is in its final stages of approval and will be rolled out within a month as per road transport and highways ministry.

The vehicle scrapping policy is very important for the revival of the auto industry. The scrappage policy is in its last stages of approval and it will come within a month or by month-end. The govt. is set to clear this policy with the approval of the highest authorities which can be a win-win for Indian manufacturers.

The vehicle scrappage policy is expected to entail scrapping of old vehicles in exchange for some incentives for consumers while setting up vehicle recycling clusters to boost use of recycled materials, thereby cutting cost of raw materials.

This will help to reduce carbon footprints as only BSIV compliant engines will run on roads of India in line with PUC rules and regulations.

The proposed policy is seen as a growth driver in boosting demand for new vehicles at a time when the economy is hit by weak consumer sentiment amid covid-19 led slowdown in the broader economy. The vehicle scrappage policy would focus on eliminating the fleet of old polluting commercial vehicles plying on the country’s roads. India has the potential to become a hub for automotive manufacturing globally in the next five years.

Appealing to the auto industry stakeholders to reduce import dependency, he said the government plans to increase import duties on certain imported parts in near future.

This is a good initaitive ogf the Indian Govt. to make India 'Aatmanirbhar' and one of the automotive manufacturing leader.