PM launches vehicle scrapping policy

Prime Minister Narendra Modi today addressed the Investor Summit in Gujarat via video conference and launched the vehicle scrapping policy or the Voluntary Vehicle-Fleet Modernization Program. The summit is being organized to invite investment for setting up vehicle scrapping infrastructure under the Vehicle Scrapping Policy, said an official press release.

The summit will also draw focus on the synergies presented by the ship breaking industry at Alang, for development of an integrated scrapping hub. Road Transport & Highways Nitin Gadkar and Gujarat Chief Minister Vijay Rupani were also present on the occasion.

The Prime Minister said that the general public will benefit greatly from this policy in every way. 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 the purchase of a new vehicle. Along with this, he will also be given some exemption in road tax.

The second benefit will be that the maintenance cost, repair cost, fuel efficiency of the old vehicle will also be saved in this. The third 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. Fourth, it will reduce the harmful impact of pollution on our health.

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,” said the Prime Minister in a series of tweets before the event.

The Prime Minister said the new scrapping policy is an important link in the circular economy and in the waste-to-wealth campaign. This policy, by following the principle Reuse, Recycle and Recovery, will also promote the country’s self-reliance in the auto sector and in the metal sector. The policy will bring in fresh investment of more than Rs 10,000 crore and will create thousands of jobs, the release said.

The Prime Minister stressed that as India is about to enter the 75th year of Independence, the next 25 years are very important. He said there would be many changes in the way of working the business and in everyday life in the next 25 years. He said in the midst of this change, it is equally important to protect our environment, our land, our resources and our raw material.

The Prime Minister remarked that today while on one hand India is exploring new possibilities through the Deep Ocean Mission, on the other it is also encouraging a circular economy. He added that the effort is to make development sustainable and environment friendly.

The Prime Minister highlighted the unprecedented work done in the energy sector. India has entered in the front ranking countries in the field of solar and wind energy.

The Prime Minister stressed the fact that, under the new policy vehicles will not be scrapped merely on the basis of age. Vehicles will be scientifically tested through authorized, automated testing centres. Unfit vehicles will be scrapped scientifically. It will ensure that registered vehicle scrapping facilities all over the counties are technology driven and transparent.

The Prime Minister said that this new policy will give new energy and security to the scrap-related sector. Employees and small entrepreneurs will get a safe environment and will get the benefits 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 the fact that we had to import 23,000 crore worth of scrap steel during the last year as our scrapping is not productive and we are not able to recover energy and rare earth metals.

The Prime Minister said that be it ethanol, hydrogen fuel or electric mobility, active participation of industry is very important. From R&D to infrastructure, industry has to increase its partnership. He asked them to have a roadmap for Aatmnirbhar Bharat for next 25 years. Whatever help they need for this, the government is ready to give it, he assured.