India is a country with a huge population. In this highly populous country, there are innumerable cars, bikes, and other modes of transport plying on the streets of the country. Some of which are healthy, while most of them have already completed their lifecycle. The Indian Automotive Industry is currently the fourth-largest in the world. However, despite ranking so high globally, India still doesn't has any sustainable option to dispose off old vehicles. But, things are going to change now as the much-awaited Vehicle Scrappage Policy will be soon introduced in India.
Also Read: Hyundai Motor India Restarts Production: Rolled-Out 200 Cars On First Day During Lockdown
First of all, let us tell you what is a Vehicle Scrappage Policy. A Scrappage is a government-initiated process in which vehicles which have reached the end of their lifecycle are disposed off. Automobiles are scrapped using shredders that tear them down into tiny pieces of metal and then they can be recycled too. Vehicles also have other non-metal parts which are later disposed off in a sustainable process. These Scrappage programmes generally have dual characteristics. On one hand, they stimulate the automobile industry while on the other hand, they remove inefficient and more polluting vehicles from the road.
Vehicle Scrappage Policy is very important for India. Some studies report that scrappage can take around 28 million polluting vehicles (mainly two-wheelers) off the Indian roads, thereby immensely curbing pollution levels. Moreover, if the scrappage policy is implemented for trucks and buses, it can bring down carbon pollutant emissions by 17 per cent, hydrocarbon and nitrogen oxide emissions by 18 per cent and particulate matter (PM) emissions by up to 24 per cent.
The Union Cabinet Minister, Shri Nitin Gadkari, very recently said that the vehicle scrappage policy is likely to be finalised soon to boost the automobile sector in the country. The Minister of Road Transport and Highways also said that his ministry has fixed a target to build highways worth Rs. 15 lakh crores in the next two years and annexed that the road construction pace has reached 30 kilometres a day now.
"The scrapping policy will be finalised soon. It is going to boost the industry. It is going to reduce the production cost. Yesterday also, I had a discussion with the Secretary and we will make it as early as possible", said Mr Gadkari in a video-conference with the members of SIAM (Society of Indian Automobile Manufacturers) Institute over impact of COVID-19 on the automobile sector.
Prior to this, Finance Minister of India, Shrimati Nirmala Sitharaman in February also said that a policy for the scrapping of old vehicles 'is in the works' and will be announced after concerned ministries 'fine-tune' it. The much-awaited vehicle scrappage policy is now awaiting final clearance from the Union Cabinet. This proposed policy, once approved, will be applicable on all vehicles and will primarily focus on eliminating the fleet of old polluting commercial vehicles plying on the countrys roads.
Mr Nitin Gadkari had earlier said that once this policy is approved, India could emerge as an automobile manufacturing hub as key raw materials available from scrapping like steel, aluminium and plastic are bound to be recycled, which will aid in bringing down the automobile prices by around 20-30 per cent. In July 2019, the Government of India also proposed amendments to Motor Vehicle Norms to allow scrapping of vehicles which are older than 15 years in a bid to spur adoption of electrical vehicles.
The Government of India also released a draft notification which states that the newly purchased motor vehicles will be exempted from payment of fees for RC (registration certificate) and assignment of the new registration mark if the buyer produces scrapping certificate of the previously-owned vehicle of the same category issued by the authorised scrapping centre/agency.
Thus, in a nutshell, we can say that the vehicle scrapping policy is very necessary for India. This new policy can bring not just one or two but a three-way advantage for the country which include environmental benefits, economic growth with demand creation and new job opportunities (both in the automobile sector with its growth and also with the establishment of new scrapping centres in the country). Additionally, it will have numerous other benefits too.
Also Read: This Is How The Smart Air Purifier Of 2020 Hyundai Creta Works [Video]
So, what are your thoughts on the Vehicle Scrappage Policy of India? Do you think the Indian Government should approve this as soon as possible? Share your thoughts with us in the comments below.
