08-09-2020

Union Minister Nitin Gadkari said the Centre is very close to finalise the new vehicle scrappage policy for the country. Speaking at the 60th ACMA Annual Session, Gadkari�s remarks on the status of the policy will bring relief to many carmakers who have been demanding it for some time.

Gadkari said that the policy is expected to receive Centre`s approval in a month�s time or even earlier.

On Sunday, Union Minister Prakash Javadekar had also said proposal for the auto scrappage policy was ready and all stakeholders have provided inputs, therefore its announcement was likely "very soon". He was speaking at the Society of Indian Automobile Manufacturers (SIAM) annual convention.

Vehicle scrappage policy has the potential of not just putting old and polluting vehicles off Indian roads but also injecting life into the automobile industry due to fresh demand. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrapyards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.