In the next five years, India will become the world’s largest automobile manufacturing hub, we will recycle scraps from all over the world- Nitin Gadkari
The government is counting new benefits every day regarding the voluntary vehicle scraping policy announced in the general budget. Union Minister Nitin Gadkari has said that after the removal of old and polluting vehicles, the buyers of the new vehicle will get many benefits under the policy, the government will issue details in the next 8 to 10 days. The government believes that with the scraping policy, India will become the world’s largest automobile manufacturing hub in the next five years and it will provide a large number of jobs.
Auto industry business will grow by 30%
Describing the new policy as a boon, Gadkari said that this will increase the business of Indian automobile industry by 30 percent and will give a boost to India’s automobile sector. Those known for scrapping their vehicles will get some benefits from manufacturers. In fact, the scraping policy will prove to be a boon. This will not only boost the economy, benefit the automobile sector, but will also check vehicle pollution. Details of the policy will be told very soon. He assured that the automobile industry would transform into a sector that would provide a maximum number of jobs in the coming days.
Fitness test of vehicles will be automatic
The Voluntary Scrapping Vehicle Policy will apply to personal vehicles over 20 years old and commercial vehicles older than 15 years. Vehicles will have to undergo an automatic fitness test under the policy. This entire process will be automatic. There will be no human intervention in this process to prevent disturbances of any kind.
About 1 crore vehicles will come under the policy
The policy covers about 51 lakh light motor vehicles (LMVs) which are more than 20 years old, while the other 34 lakhs LMVs are above 15 years old. Gadkari said it would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years old and currently without a valid fitness certificate. He said that these vehicles are estimated to cause 10-12 times more pollution than new vehicles.
Investment of 10 thousand crores, 25 lakh jobs will be created
While presenting the general budget, Finance Minister Nirmala Sitharaman had said that the details of the scheme will be shared separately by the ministry. Gadkari had said that the policy would create new investments of around Rs 10,000 crore and create 25 lakh jobs.
Auto industry will be 10 lakh crore in the coming years
Talking about the policy, Gadkari said that it would promote the purchase of new vehicles in addition to generating a huge number of jobs. The business of the automobile industry is currently 4.5 lakh crores, which is likely to be 10 lakh crores in the coming years. Its export component which is currently 1.45 lakh crore rupees will reach 3 lakh crore rupees.
Once the policy is implemented, scrap materials like steel, plastic, rubber, aluminum can be used to make automobile parts. We will take scrap from the whole world and recycling it. This will reduce the cost of automobile components by up to 40%. This will also cut India’s crude oil import bill of Rs 10 lakh crore.
At present, the process of making incentive structure continues
Road Transport and Highways Secretary, Giridhar Aramane said that the process of constructing the incentive structure is going on. We are in talks with all stakeholders. The Union Minister will announce it soon. State governments have announced measures to discourage owners of older vehicles. It is named Green Tax. Many states have already imposed tax. But it has been implemented ineffectively. Noting that scraping has huge benefits, he said the research said that an old four-seater sedan would suffer a loss of Rs 1.8 lakh in five years, whereas for a heavy vehicle it would be 8 lakh rupees for a period of three years.
Scrapping centers will be built in association with the private sector
Aramane said that the policy is mandatory, all vehicles will have to undergo an automatic fitness test conducted without any human intervention, corruption or fraud of data. For this, automatic fitness tests will be set up under PPP mode, for which private partners and state governments will provide help and facilities. The role of the government will be in providing only facilities. The government will have no role in regulating and controlling the scraping center. The shipping sector already has a lot of development scraping centers. We plan to connect automobile scraping with shipping and other sectors. They will be fined and confiscated for driving a vehicle that fails in the automatic test.
