Prime Minister Narendra Modi launches voluntary automotive scrappage policy

The Prime Minister said that the policy will bring in investments of around Rs 10,000 crore, adding that Alang in Gujarat can be the hub of vehicle scrappage.

Adding further, the PM in a series of tweets wrote, "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. I would request our youth & start-ups to join this programme."

"Vehicle scrapping will help phase out unfit & polluting vehicles in an environment-friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible."

Highlighting the benefits of vehicle scrapping to the common man, PM Modi said, "Firstly, a certificate will be given on scrapping of the old car, which will ensure that an individual does not have to pay registration fees while buying a new car. He will also get a discount on road tax. Secondly, a person will save money on maintenance cost, repair cost and fuel efficiency of the old car. 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."

“A vehicle will not be scrapped just because it is old. Fitness tests will be conducted at scrappage centres and only after that will it be scrapped, that too, as per scientific methods,” PM Modi said, pointing out the fifth benefit of vehicle scrapping.

Union Minister for Road Transport & Highways (MoRTH) Nitin Gadkari said vehicle scrapping will reduce dependency on imports as well as save foreign exchange for the country.

Rs 22,000 crore worth of scrap steel is imported in the country and the new policy will cut down raw material costs by around 40 per cent, he said.