Union Minister for Road Transport & Highways, Government of India Mr. Nitin Gadkari says the scrappage policy will benefit the auto industry as well as the car owners
The Indian automobile industry is about to grow by 22%, after the implementation of the vehicle scrappage policy, says Union Minister for Road Transport & Highways, Government of India Mr. Nitin Gadkari. Speaking at the 56th ACMA annual session Mr. Gadkari also said, the scrappage policy will benefit the auto manufacturers in the country, as well as the vehicle owners also.
The Indian Government’s new scrappage policy will significantly reduce the carbon emission level by 17%. It will also generate a total of Rs. 11,500 crore of steel crap across the country. In this policy the state government can earn up to Rs. 10,000 crore and the central government can earn up to Rs. 4,000 crore.
In the first phase of the scrappage policy the commercial vehicles with age of more than 15 years will be scrapped. Incidentally, the old commercial vehicles are known for emitting more pollutants into the air than other vehicles. In the policy the vehicles owners will receive a three stage incentive of 8% – 12% during new vehicle purchase. The owners who scrap their old vehicles will receive special incentives from the manufacturers, state governments and central government as well.
The new vehicle scrappage program proposed by central government is dubbed as the Voluntary Vehicle fleet Modernisation Program or V-VMP. This scheme will cover those vehicles which were manufactured before 31st March, 2005. Nitin Gadkari has informed a space of 1 lakh acre is available in Kandla, where the scrappage facility will be build. The scrapped aluminum, copper and steel would be sold to the manufacturers at cheaper rate. Therefore the raw material import will be reduced, which will benefit the local manufacturers.
The minister also stated that the Indian automobile industry should focus on quality, and to do that the automakers should emphasize more on research and patents. He also believes, the Indian automobile industry can take the top spot in the world in next 10 years.