PM Modi Launches Vehicle Scrappage Policy, Expects Over Rs 10,000 Crore New Investments In Scrapping Industry

Prime Minister Narendra Modi addressed the Investor Summit in Gujarat via video conference and launched the National Automobile Scrappage Policy.

The Summit is being organized to invite investment for setting up vehicle scrapping infrastructure under the Voluntary Vehicle-Fleet Modernization Program.

The Summit also drew focus on the synergies presented by the ship-breaking industry at Alang to develop an integrated scrapping hub.

"The launch of Vehicle Scrappage Policy today is a significant milestone in India's development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities," PM Modi said.

"Vehicle scrapping will help phase out unfit and polluting vehicles in an environment friendly manner. Our aim is to create a viable circular economy and bring value for all stakeholders while being environmentally responsible," he added.

The PM said the new scrapping policy is an essential link in the circular economy and the waste to wealth campaign and would bring in new investments of more than Rs ten thousand crores and create thousands of jobs.

He said employees and small entrepreneurs would get a safe environment and benefit like the employees of other organized sectors. They will be able to work as collection agents for the authorized scrapping centres.

The Prime Minister lamented that we had to import Rs 23,000 crore worth of scrap steel during the last year as our scrapping is not productive and we cannot recover energy and rare earth metals.

Under the Vehicle Scrappage Policy, the first advantage will be that a certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on purchasing a new vehicle. Along with this, he will also be given some exemption in road tax.

It also benefits the general public as the old vehicle's maintenance and repair costs will also be saved.

Another 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.