In early 2021, the government of India announced a new vehicle scrapping policy so the authorities are ready to concentrate on this policy and are planning to open up 70 new vehicle scrapping centres within five years from now. The centre wants to implement the latest vehicle modernisation policy that is mandatory scrapping of all sorts of vehicles which get older than 15 years.
This latest policy will help in the reduction of pollution that will, of course, save the environment and the people from hazardous diseases caused due to the pollution. The opening of new vehcile scrapping centres also opens up job vacancies for the ones in need.
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A few years ago the Mahindra Group took the first advantage with the help of its Cero Recycling plant that started with recycling and scrapping vehicles. Maruti Suzuki Toyotsu also started dismantling and recycling vehicles in Noida that has a capacity of scrapping 2000 vehicles per month.
In mid-December, Tata Motors signed an MoU with Maharashtra to open up a new scrappage facility as well. The centre is planning to open up more and more scrappage centres pan India. Nitin Gadkari, Union Minister Of Road Transport and Highways in a national conference on Investment Opportunities In Highways Logistics said, The investment opportunities in the aforementioned sectors will focus on three central themes Bharatmala Pariyojana, Asset Monetisation and Vehicle Scrappage Policy that will benefit the public.
The conference was set up to aim for investment opportunities in the governments scrappage policy. The Voluntary Vehicle-Fleet Modernisation policy is targeting to develop a new ecosystem for vehicles that are unfit and polluting the environment. This new development will help in reducing pollution by scrapping around one crore vehicles that are not fit, improving roads and passengers safety, boosting sales of the auto industry, better fuel efficiency, organising scrappage industry and boosting the availability of low-cost materials for the industry. In Maharashtra, around 5.80 lakh vehicles are already registered to reach scrappage centres.
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There are a lot of benefits of registering vehicles for the scrappage policy. Over the next five years, the government is planning to open 50 to 70 Registered Vehicle Scrapping Facilities (RVSFs) to cater to the demand of scrapping unfit vehicles. The upcoming setup will increase the value extraction from 70% to 90-95%.
Nitin Gadkari further added, The Vehicle Scrapping Policy will reduce pollution, improve tax revenues, grow the automobile sector, boost exports and create jobs. It is a win-win situation, in which investors on a high scale can come in.
Union home secretary, Ajay Kumar Bhalla said, Auto scrappage carries great importance in our economy, especially for India, which requires certain metals which arent domestically available. Our aim is to make scrappage centres viable by bringing a mandate that unfit vehicles have to be scrapped. This policy will also help auto scrappage facilities, established with the support of state governments, earn revenue and be viable.
The Government is planning to take the lead in implementing this vehicle modernisation policy by introducing mandatory scrapping of all sorts of vehicles that are older than 15 years. This latest policy will become effective from October 1 next year.
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Talking about the policy Mohammad Athar, lead, Economic Development and Infrastructure, PwC said, Several measures have been taken to encourage owners of End-of-Life-Vehicles to scrap their vehicles. He further added that several steps are taken to make scrapping seamless even for facility operators. A single-window system for registration of scrapping facilities and testing stations has been launched on the National Single Window System (NSWS) of DPIIT.
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