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Friday, December 3, 2021
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How New Scrapping Policy Will Provide New Identity To Automobile Industry

Prime Minister Narendra Modi announced on Friday that those who scrap their old automobiles will receive a remission on the registration price for their new vehicle, as well as road tax savings.

Modi said Alang in Bhavnagar, which has the facility and manpower to dismantle ships, could become a “major hub for scrapping of vehicles,” when he formally inaugurated the national vehicle scrapping strategy.

“Today is the first day of the national automotive scrapping policy. This policy will provide New India’s mobility and the automobile industry a new identity. This policy would play a significant role in modernising the country’s vehicle population and scientifically removing unfit automobiles from the roads,” Modi said while virtually announcing the policy at the Mahatma Mandir in Gandhinagar.

According to Modi, new mobility technologies not only lower the cost of travel and transportation, but also contribute to economic growth. “It is the need of the hour that India targets clean, congestion-free and convenient mobility in the 21st century,” he remarked.

According to Modi, the new car scrapping policy, which is a key part of the “circular economy,” will bring in fresh investments worth Rs 10,000 crore to the country.

“In this entire region, the infrastructure and skilled manpower (needed for scrapping) exists. So after ships, Alang can also become a big hub for scrapping vehicles.” the Prime Minister stated in Alang, where 8,300 ships have previously been broken and recycled.

Bhavnagar has around 80 induction furnace units and 60-65 steel re-rolling mills, which recycle scrap from ships that come to the Alang Shipbreaking Yard.

Modi presided over the signing of six memorandums of understanding (MoUs) to establish registered vehicle scrappage facilities (RVSF) in Gujarat and one in Assam. He added in his speech that the new legislation will help the country’s car and aluminium industries.

“During last year, Rs 23,000 crore worth of scrap steel was imported, because the scrapping that currently happens in India is not productive. Energy recovery is almost nil. The entire value of high strength steel alloy is not recovered. The recovery of rare metals also doesn’t happen,” Modi said. It will be able to recover rare earth metals that power current technology if scrapping is done scientifically, he noted.

According to the Prime Minister, the scrapping programme will benefit ordinary car owners. “A certificate will be provided to the owner for scrapping their old vehicle. Those having this certificate will not need to pay any registration fee while buying a new vehicle.”

“Secondly, some allowances will be given in payment of road tax. There will be savings in the cost of repair, maintenance, and fuel of the old vehicle,” he stated. According to him, the new regulation would minimise road accidents and promote health by reducing vehicular pollution.

450-500 vehicle fitness centres will be created under the new policy, according to Union Road Transport and Highways Minister Nitin Gadkari, who was present at the event in Gandhinagar with Chief Minister Vijay Rupani.

“There are about 1 crore vehicles in India that are plying on the roads without valid fitness. Compared to new vehicles, the old vehicles are 10-12 per cent more polluting. These old vehicles also pose a safety hazard,” Gadkari said.

Under the new regulation, only vehicles that fail a fitness test would be removed. According to Gadkari, the fundamental criterion for destroying a vehicle would be its “fitness,” not its age. “So we are encouraging the setting up of automated fitness centres in the PPP mode in every district in the country,” he stated.

Gadkari stated that, in addition to developing Alang as a “integrated scrapping hub” for both ships and vehicles, an industrial scrap cluster might be established at Kandla, where scrap from neighbouring nations with no scrapping facilities, arrives. “We dream to make India the scrapping hub of Southeast Asia. Scrapped vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal, Sri Lanka can be brought to Kandla,” he stated.

Chief Minister Rupani said: “Due to the significant increase in the number of vehicles being registered in the state, it has become necessary that we scrap the old vehicles and develop facilities for the same.”

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