Indian Prime Minister Hopes Vehicle Scrappage Policy Will Bring $1.3B Investment

Prime Minister Narendra Modi addressing 'Investors Summit for setting up Vehicle Scrapping Infrastructure'. (BJP, @BJP4India/Twitter)

NEW DELHI — India’s new vehicle scrappage policy is set to give the country a new identity as it heads in the direction of clean and convenient mobility and promote self-reliance on the “Reuse, Recycle, and Recovery” principles that will bring an investment of over $1.3 billion into the sector.

Vehicle Scrappage Policy will play a big role in the modernization of the vehicular population in the country, removing unfit vehicles from the roads in a scientific manner,” said Prime Minister Narendra Modi on Aug. 13, addressing via video conference the Investor Summit in Gujarat.

The summit was organized to invite investment for setting up vehicle-scrapping infrastructure under the Voluntary Vehicle-Fleet Modernization Program or the Vehicle Scrapping Policy.

“Modernity in mobility not only reduces the burden of travel and transportation but also proves to be helpful for economic development,” he said.

The goal for 21st century India to be “clean, congestion-free” and convenient mobility is the need of the hour, he said.

The new scrapping policy is an important link in the circular economy, and in the waste-to-wealth campaign, the prime minister believes.

“This policy also reflects our commitment to reduce pollution from the cities of the country and protect the environment and fast development,” he said.

“This policy by following the principle’ Reuse, Recycle and Recovery’ will also promote the country’s self-reliance in the auto and metal sectors. The policy will bring in a fresh investment of more than INR 10,000 crores ($1.34 billion) and will create thousands of jobs.”

There would be many changes in the way of working the business and in everyday life in the next 25 years, Modi said. In the midst of this change, he said it is equally important to protect the environment, land, resources, and raw materials.

“We can work on Innovation and Technology in the future, but the wealth we get from Mother Earth is not in our hands.”

The general public will benefit greatly from this policy in every way, said the prime minister.

“The first advantage will be that a certificate will be given on scrapping the old vehicle,” he said.”

“Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle. Along with this, he [sic] will also be given some exemption in road tax.”

The second benefit would be that the costs of maintenance, repairs, and fuel efficiency of the old vehicle will also be saved by this, he said.

“The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology,” he said.

Fourth, it will reduce the harmful impact of pollution on our health.”

Modi stressed that under the new policy, vehicles would not be scrapped merely based on age.

“Vehicles will be scientifically tested through authorized, automated testing centers. Unfit vehicles will be scrapped scientifically,” Modi said.

“It will ensure that registered vehicle scrapping facilities all over the country are technology-driven and transparent.”

He also said the policy would provide new energy and security to the scrap-related sector.

He said that continuous steps were being taken to make Indian industry sustainable and productive to speed up Atmanirbhar Bharat (self-reliant India).

(With inputs from ANI)

Edited by Amrita Das and Krishna Kakani



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