The voluntary scrapping policy for old and unfit vehicles announced in the Union Budget for 2021 -22 will help create jobs for 25 lakh people and lower the price of auto components by as much as 40 per cent, Union Road Transport and Highways Minister Nitin Gadkari said here on Saturday.
In Wardha to attend some programmes, the minister said moves initiated by the Centre will make India an automobile manufacturing hub in five years.
Vehicles older than 15 years are not fuel efficient and also have high maintenance costs, and the scrapping policy will help overcome these problems, he added.
(Also read | Fitness test, old vehicle certification should happen at earlier intervals: SIAM)
Gadkari said ₹50 crore will be allotted by the Union MSME ministry to set up research and training facilities in the Mahatma Gandhi Institute for Rural Industrialisation (MGIRI).
Efforts are on to set up a logistics park in Sindi and work on Concor's dry port was also progressing, he added.
This story has been published from a wire agency feed without modifications to the text.