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The introduction of a new vehicle scrappage policy has reached its last stage of finalization and awaits clearance from the Union Cabinet and other stakeholders, according to India’s Minister of Road Transport, Nitin Gadkari.


Gadkari shared the information during a webinar held by the Material Recycling Association of India on May 20 where he stated that drafting the policy had faced obstacles over the last two years. He added that the transport ministry is working towards getting the policy implemented as soon as possible by working with auto industry associations like the Society of Indian Automobile Manufacturers to expedite its implementation. 


The new vehicle scrappage policy, Gadkari suggested, could require automotive manufacturers to offer discounts on new vehicles if a consumer produced a certificate of having scrapped their old vehicle. However, rules like tax concessions for scrapping vehicles remain a challenge to be addressed by the ministry before the policy is implemented.  


Gadkari said he believes that the implementation of the policy could also help in making India an automotive hub since the recycling of key raw materials such as steel and aluminium could reduce vehicle prices by 20-30pc.


The new policy would come as a welcome respite for the country’s automotive businesses, which were reeling under demand challenges even before COVID-19 related lockdowns across the country saw car sales plummet over the last two months. Major automotive manufacturers like Tata and Ashok Leyland have been vying for the implementation of this policy to boost demand. 

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