Vehicle scrappage policy is a win-win situation for all: Nitin Gadkari

Transport Minister Nitin Gadkari chairs a stakeholder consultation meeting on the vehicle scrappage policy; urges India Auto Inc to extend support through more automated testing stations and scrappage centres, create more awareness through the dealer network, and offer a discount against certificate of deposit on scrapped vehicles.

Autocar Pro News Desk By Autocar Pro News Desk calendar 26 Sep 2023 Views icon6515 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The Union Minister for Road Transport and Highways Nitin Gadkari has urged all stakeholders to come forward and support the vehicle scrappage policy. Addressing a stakeholder consultation in New Delhi yesterday, he said it is a win-win situation for all.

The stakeholder consultation meeting was held to seek support from India Auto Inc to expedite the implementation of the vehicle scrappage policy through more investment in vehicle scrapping infrastructure of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs), generation of awareness among citizens and extension of discounts to vehicle owners for scrapping vehicles at RVSFs.

The Union Minister said the Ministry has undertaken multiple initiatives to build resilient demand for vehicles such as building a world-class network of highways, electrification of buses, and mandatory automated fitness testing of vehicles. He said the automobile OEMs should work towards increasing their production capacity and support the nation to become the largest auto industry in the world.

Tata Motors opened its first vehicle scrappage facility in Jaipur in February 2023, its second in Bhubaneswar, and inaugurated its third in Surat on September 24. All the facilities use globally benchmarked and optimised recycling processes and have a capacity of scrapping 15,000 passenger and commercial vehicles per annum.

Gadkari emphasised that since the auto industry is the biggest beneficiary of this policy, it must come forward and extend support through more investment in setting up Automated Testing Stations (ATSs) and Registered Vehicle Scrapping Facilities (RVSFs), more awareness amongst citizens about the policy benefits through their dealer network, and a finalised discount against certificate of deposit obtained by citizens on scrapping their vehicles.

The Ministry of Road Transport and Highways (MoRTH) had launched the Voluntary Vehicle-Fleet Modernization Program (Vehicle Scrapping Policy) on March 18, 2021. This policy aims to create an ecosystem for phasing out old, unsafe, polluting vehicles and replacing them with newer, safer, and fuel-efficient vehicles.

Anurag Jain, secretary, MoRTH, encouraged India Auto Inc to set up scrappage centres and automated testing stations across the country. Considering that the vehicle scrappage policy is expected to increase auto sales by about 8% and contribute about 0.5% to the country’s GDP, it is imperative auto OEMs extend their wholehearted support to the policy.

The stakeholder consultation was aimed to seek support from the automobile industry to expedite the implementation of vehicle scrapping policy in the form of investment in vehicle scrapping infrastructure of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs), generation of awareness among citizens and extension of discounts to vehicle owners for scrapping vehicles at RVSFs. Representatives from all major automotive OEMs (including Tata Motors, Mahindra & Mahindra, Maruti Suzuki India, Kia India and Hyundai Motor India), auto dealers and used car aggregators attended the event and shared their perspectives on the challenges and actions required to expedite implementation of the vehicle scrapping policy.

ALSO READ: Tata Motors opens its third scrappage facility in India 

‘We aim to expand capacity to dismantle a million end-of-life vehicles by 2026-27': CERO Recycling’s Sumit Issar

Maruti Suzuki Toyotsu India can scrap a car in 200 minutes

RELATED ARTICLES
Citroen begins rolling out Basalt from Tamil Nadu plant ahead of launch

auther Autocar Pro News Desk calendar17 Jun 2024

Made-in-India Citroen Basalt SUV-coupe, which will be powered by a 110hp 1.2-litre turbo-petrol engine, will also be exp...

Hyundai recalls 1,744 Ioniq 5 EVs to inspect integrated charging control unit

auther Autocar Pro News Desk calendar15 Jun 2024

Hyundai Motor India has cited a “potential issue in the integrated charging control unit (ICCU), which may discharge the...

Tata Motors looks to tap growing trend for personalisation in cars and SUVs

auther Autocar Pro News Desk calendar15 Jun 2024

The car and SUV maker expects the trend of mass customisation to transition into each car being a unique product, enable...