New Delhi: Union Road, Transport and Highways Minister Nitin Gadkari on Thursday mentioned the ‘Voluntary Vehicle-Fleet Modernisation Programme’ or ‘Vehicle Scrapping Policy’ will supply about 5 p.c rebate to consumers on new automotive purchases in lieu of scrapping of the outdated.
Gadkari, who was talking within the Lok Sabha, termed it a “win-win” state of affairs and mentioned the “vehicle manufacturers are advised for providing a discount of five percent on the purchase of new vehicle against the scrapping certificate”.
Gadkari, who can also be the Union Minister for Micro, Small and Medium Enterprises (MSMEs), mentioned this coverage will lead to a rise of about Rs 40,000 crore within the GST.
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“The scheme shall provide strong incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres, which shall provide the owners with a scrapping certificate,” he added.
The Union Minister whereas itemizing the incentives mentioned scrap worth for the outdated automobile given by the scrapping centre will probably be roughly 4 to 6 p.c of ex-showroom worth of a brand new automobile.
Gadkari mentioned the state governments could also be suggested to supply a street tax rebate of as much as 25 p.c for private autos and as much as 15 p.c for industrial autos.
Asserting the Ministry of Road Transport and Highways will promote the organising of Registered Vehicle Scrapping Facility (RVSF) throughout India and can encourage private and non-private participation for opening up of such centres, he mentioned efforts are additionally being made to arrange Integrated Scrapping Facilities throughout India.
“Some of the identified places include Alang in Gujarat, where it is being planned to develop a highly specialised centre for scrapping among many other potential centres, where different scrapping technologies can be synergised together,” PTI quoted Gadkari as saying.
The Union Minister additional mentioned the scrapping facility by way of a single-window shall must adjust to environmental and air pollution norms and with all relevant acts of regulation with a simplified registration course of.
Gadkari added the ministry shall additionally promote the organising of automated health centres on a PPP mannequin by the state authorities, personal sector and car firms.
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Expressing confidence, the Union Minister mentioned the ecosystem is anticipated to draw extra investments of round Rs 10,000 crore and 35,000 job alternatives.
Gadkar additionally tweeted on this regard later.
“The @MORTHIndia introducing the Voluntary Vehicle-Fleet Modernization Program or ‘Vehicle Scrapping Policy’ which is aimed at creating an Eco-System for phasing out of Unfit and Polluting Vehicles,” he mentioned.
The @MORTHIndia introducing the Voluntary Vehicle-Fleet Modernization Program or ‘Vehicle Scrapping Policy’ which is geared toward creating an Eco-System for phasing out of Unfit and Polluting Vehicles.
— Nitin Gadkari (@nitin_gadkari) March 18, 2021
The Voluntary Vehicle Scrapping Policy introduced within the Union Budget for 2021-22 offers for health check after 20 years for private autos whereas industrial autos would require it after the completion of 15 years.
