The long-awaited scrappage policy has finally been put forth for cabinet approval by the Ministry of Road Transport and Highways.
The policy advocates phasing out old and pollution creating unfit vehicles through incentivization. The new policy will apply to all types of vehicles.
Scrappage policy will boost demand for automobiles, metallic and non-metallic scrap and will take unfit vehicles off the road directly to scrapyards.
India’s Minister of Road Transport and Highways Nitin Gadkari states the policy could help the country emerge as a hub for automobile manufacturing. It could also help generate key raw materials like aluminium, steel, and plastic through the processing of scrapped vehicles. This could reduce the input cost and bring down automobile prices by 20-30pc.