'National automobile Scrappage policy is win-win policy for all the stakeholders': Nitin Gadkari explains-

New Delhi, November 23: Union Minister for Road Transport and Highways, Nitin Gadkari, said that National automobile Scrappage policy is mutual win-win policy for all stakeholders. Inaugurating the Vehicle Scrapping and Recycling Facility set upby Maruti Suzuki Toyotsu India Private Limited at Noida, he said the policy aims to create an ecosystem for phasing out unfit, polluting vehicles from Indian roads, and to meet this objective, advanced scrapping and recycling units are needed.

He said the policy will help increasing Automobile sales, provide employment, reduce import cost, generate incremental GST revenue and help to solve global shortage of semi-conductor chip. He said 3-4 scrapping centres should be set up in each district.

The Ministry of Road Transport and Highways recently launched Voluntary Vehicle-Fleet Modernisation Program or the Vehicle Scrapping Policy. It aims at creating an ecosystem for phasing out old unsafe, polluting vehicles and replacing them with newer safe and fuel-efficient vehicles. The Ministry has also notified Registered Vehicle Scrapping Facility Rules to enable setting up of modern vehicle scrapping facilities in India which can recycle vehicles in an environment friendly manner.

The existing vehicle dismantling and recycling industry in India is unorganized and not done in an environment-friendly manner. This leads to inefficient resource management, and non-realisation of full value of high-strength steel alloys, and recovery of valuable rare-earth metals. The existing ELV scrapping cycle has low recovery percentage; many materials get wasted / aren’t properly recycled.

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It is an endeavour of this Ministry to promote setting up of RVSF, to enable use of environmentally-friendly processes in this regard. The Vehicle Scrapping Policy hence creates such formal business opportunity and promote scientific recycling within scrapping industry.