Prime Minister Narendra Modi started National Automobile Scrappage Policy through video conferencing while in the Investor Summit in Gujarat on August 13, 2021.
Union Minister Nitin Gadkari declared during the launch of the policy that around 99 per cent of replacement of metal waste can be prepared with regular scrapping. He said that it will take down the cost of raw material by approx 40 per cent.
He stated that it will make the elements less expensive and increase competitiveness in the global market. He added stating that with improved sales of automobiles, the government will get a gain of Rs 30,000-40,000 cr in GST.
The Minister announced that the state government will also get a gain of Rs 30,000-40,000 cr in GST.
As per an estimation, with the expanded sale of automobiles, Govt will get a profit of Rs 30,000-40,000 cr in GST. State Govts will also get a profit of Rs 30,000-40,000 cr in GST: Union Min Nitin Gadkari at the launch of National Automobile Scrappage Policy at Investor Summit in Gujarat
— ANI (@ANI) August 13, 2021
Investor Summit: Key Highlights
•The Investor Summit was created by the Gujarat government and the Ministry of Road Transport and Highways to bring investment to set up vehicle scrapping infrastructure under the Vehicle Scrapping Policy, as per the announcement published by Prime Minister’s Office (PMO).
•The Investor Summit is required to bring focus on the synergies offered by the ship-breaking industry at Alang, for the advancement of an integrated scrapping hub
•It saw support from potential investors, industry experts and concerned central and state government ministries.
About Vehicle Scrapping Policy
•The Vehicle Scrapping Policy has been included to produce an eco-system to phase out old, ineffective and polluting vehicles in an environmentally friendly and safe practice.
•The policy intends to bring transformational development in the auto sector by decreasing vehicular emanations of pollutants. The policy was first declared by Union Finance Minister Nirmala Sitharaman on February 1, 2021, during her budget speech at the Parliament.
•Under the policy, all personal vehicles will have to experience fitness tests in electronic stations after 20 years while commercial vehicles will have to experience the fitness test after 15 years.
Vehicle Scrapping Policy: Objective
The main purpose of the Vehicle Scrapping Policy is to phase out vehicles older than 15 or 20 years to overcome urban pollution levels. The individual vehicles will be de-registered after 20 years under the scheme if found unfit and commercial vehicles will be de-registered after 15 years if they lose to meet the eligibility condition.