Modi launches National Automobile Scrappage Policy, says it opens a new range of possibilities
Prime Minister Narendra Modi launching the Vehicle Scrappage Policy at the Investor Summit in Gujarat, through video conferencing, in New Delhi on August 13, 2021.

Modi launches National Automobile Scrappage Policy, says it opens a new range of possibilities

New Delhi, August 13, 2021

Prime Minister Narendra Modi today launched the National Automobile Scrappage Policy and said the Government's aim was to create a viable circular economy and bring value for all stakeholders while being environmentally responsible.

Addressing the Investor Summit in Gujarat via video conference, Modi said the policy owuld give a new identity to the automobiles sector and to the mobility of the country.

"This policy will play a big role in the modernization of the vehicular population in the country, removing unfit vehicles from the roads in a scientific manner. Modernity in mobility not only reduces the burden of travel and transportation, but also proves to be helpful for economic development. The goal for 21st century India to be Clean, Congestion Free & Convenient Mobility, is the need of the hour," he said.

The summit was organized to invite investment for setting up vehicle scrapping infrastructure under the Voluntary Vehicle-Fleet Modernization Programme or the Vehicle Scrapping Policy. It will also draw focus on the synergies presented by the ship-breaking industry at Alang in Gujarat for development of an integrated scrapping hub.

Union Minister for Road Transport & Highways Nitin Gadkari and Gujarat Chief Minister Vijay Rupani were also present on the occasion.

Ahead of the event, Modi said in a series of posts on Twitter that the launch of the Vehicle Scrappage Policy today was a significant milestone in India’s development journey. He said the Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. Vehicle scrapping will help phase out unfit and polluting vehicles in an environment friendly manner.

The Prime Minister said the new scrapping policy is an important link in the circular economy and in the waste-to-wealth campaign.

"This policy also reflects our commitment to reduce pollution in the cities of the country and protect the environment and fast development. This policy by following the principle Reuse, Recycle and Recovery will also promote the country's self-reliance in the auto sector and in the metal sector. The policy will bring in a fresh investment of more than Rs 10 thousand crore and will create thousands of jobs," he said.

Modi said that, as India enters the 75th year of Independence, the next 25 years is very important. He said there would be many changes in the way of working in business and in everyday life in the next 25 years. He said that in the midst of this change, it is equally important to protect the environment, land, resources and raw material.

The Prime Minister remarked that today, on one hand India is exploring new possibilities through the Deep Ocean Mission, while on the other it is also encouraging a circular economy. He added that the effort is to make development sustainable and environment friendly.

He spoke about the work done in the energy sector and said India was among the front-ranking countries in the field of solar and wind energy.

He said the waste-to-weath campaign was being linked to Swachhata (cleanliness) and Aatmanirbharta (self-reliance).

The Prime Minister said that the general public will benefit greatly from this policy in every way. The first advantage will be that a certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle. Along with this, he will also be given some exemption in road tax. The second benefit will be that the maintenance cost, repair cost, fuel efficiency of the old vehicle will also be saved in this. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on people's health.

He stressed the fact that, under the new policy, vehicles will not be scrapped merely on the basis of age. Vehicles will be scientifically tested through authorised, automated testing centres. Unfit vehicles will be scrapped scientifically. It will ensure that registered vehicle scrapping facilities all over the counties are technology-driven and transparent.

The Prime Minister said that the policy would give new energy and security to the scrap-related sector. Employees and small entrepreneurs will get a safe environment and will get the benefits like the employees of other organized sectors. They will be able to work as collection agents for the authorized scrapping centres.

He lamented the fact that the country had to import Rs 23,000 crore worth of scrap steel during the last year as itss scrapping is not productive and it is not able to recover energy and rare earth metals.

Modi said that continuous steps were being taken to make Indian Industry sustainable and productive for speeding the process of Aatmnirbhar Bharat (self-reliant India). He emphasized that it was the government's effort to reduce dependence on imports with regard to the value chain of auto manufacturing.

He said that, be it ethanol, hydrogen fuel or electric mobility, with these priorities of the government, active participation of the industry is very important. From R&D to infrastructure, the industry has to increase its partnership. He asked them to have a roadmap for Aatmnirbhar Bharat for next 25 years. "Whatever help you need for this, the government is ready to give it," he assured them.

"Today, when the country is moving towards clean, congestion free and convenient mobility, there is a need to change the old approach and practices. Today’s India is committed to provide global standard safety and quality to its citizens and this thinking is behind the transition from BS-4 to BS6," he added.


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