India’s vehicle scrappage policy

India’s vehicle scrappage policy in final stages

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Union Minister Nitin Gadkari said the Centre is very close to finalise the new vehicle scrappage policy for the country. Speaking at the 60th ACMA Annual Session, Gadkari’s remarks on the status of the policy will bring relief to many carmakers who have been demanding it for some time.

Vehicle scrap policy has the potential of not just putting old and polluting vehicles off Indian roads but also injecting life into the automobile industry due to fresh demand. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrapyards with some sort of monetary compensation to owners which could ensure two benefits – incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.