PM Modi launches Vehicle Scrappage Policy: Here's why it is crucial

Prime Minister Narendra Modi on Friday introduced the Vehicle Scrappage Policy. The Indian Prime Minister took to Twitter to inform of the launch and urged youth and start-ups to join this programme.

"The launch of Vehicle Scrappage Policy today is a significant milestone in India's development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth and start-ups to join this programme," tweeted PM Modi.

The Indian Prime Minister also added that the new policy will also help in timely phasing out the unfit and polluting vehicles in an eco-friendly manner. "Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner. Our aim is to create a viable #circulareconomy and bring value for all stakeholders while being environmentally responsible," he added.

Earlier this week, Union Minister Nitin Gadkari had announced that PM Modi will introduce National Automobile Scrappage Policy during the 'Investors Summit for setting up Vehicle Scrapping Infrastructure' in Gandhinagar, Gujarat.

The PM informed that the new policy will attract investments of around ₹ 10,000 crores. Alang in Gujarat may also come out to be the hub for vehicle scrapping, he added.

The policy aims to build scrapping infrastructure in the form of Registered Vehicle Scrapping Facilities and Automated Testing Stations in India.

Speaking at the event in Gujarat, Gadkari said that the scrappage policy is likely to reduce raw material costs by around 40%. The policy will reduce India's dependency on scrap steel (about worth ₹ 22,000 crore) which is imported from the foreign market. The minister also stressed that the policy will help contribute to making India an industrial hub of automotive manufacturing.

(With Agency Inputs)