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A draft policy on vehicle scrapping for 15 years old heavy vehicles is likely to be ready in a fortnight, says Nitin Gadkari.

The union minister, Nitin Gadkari recently stated to media that the draft policy will be available and ready in next 15 days. The policy is being prepared aiming scrapping of about 15 lakh heavy vehicles, which are over 15-year-old.

Road Transport and Highways Minister, Mr Gadkari quoted, “We intend to scrap about 12-15 lakh heavy vehicles that are 15-year-old, in the 1st phase of our proposed Voluntary Vehicle Fleet Modernisation Programme (V-VMP). The draft policy would be ready in next 15 days.”

Mr Gadkari also added that about 65% of vehicular pollution is due to heavy vehicles, mostly trucks and buses. The scrapping of these vehicles will be done at industrial clusters such as Kandla to be set up under the government’s ambitious Sagarmala project.

In this context, the minister had also called on the Finance Minister, Arun Jaitley, who suggested making the policy mandatory. The Finance Minister also mentioned that instead of excise tax exemptions, funds will be provided for this policy in the Budget.

Benefits of the policy

1. It will provide benefits of INR 2-3 lakh for every heavy vehicle to be scrapped.
2. An additional net revenue of over INR 21,000 crore due to additional automobile sales.
3. Crude oil saving of INR 7,700 crore due to improved fuel efficiency.
4. It is analyzed that domestic steel scrap generation worth INR 55 billion to substitute imported scrap.
5. The automobile industry’s turnover in the country is INR 4.5 lakh crore and making these industrial clusters, there will be huge demand for workforce for scrapping/recycling operations and automobile manufacturing.
6. It has the potential to reduce vehicular emission by 25-30% and save oil consumption by 3.2 billion litres a year.

The Minister termed the policy as a ‘win-win’ for the Indian government, stakeholders and common masses.

Source: events.steelmintgroup.com/draft-vehicle-scrapping-policy-to-be-available-in-a-fortnight-indian-govt