Vehicle scrapping policy will reduce pollution, boost auto sector: Nitin Gadkari

After the announcement of the much-awaited voluntary policy to scrap old vehicles, Union Minister for Road Transport, Highways, and MSMEs Nitin Gadkari on Monday said that the move will reduce pollution and benefit the automobile sector.

The policy is expected to boost the demand for heavy and medium commercial vehicles, said Gadkari.

The minister added that the material recycled will be useful for the automobile industry as it will reduce the cost of manufacturing cars, buses, and trucks, increasing India's competitiveness in international markets.

He said recycled material from old vehicles will help reduce the prices. "We will take scrap from all over the world and here we will make an industry where we can use all new material and the cost will be less, and the industry will be more competitive then we will get more export orders and the import will reduce," he said.

"In the coming years, India will be one of the number manufacturing hubs of all cars, buses, and trucks, with all fuel, ethanol, methanol, bio-CNG, LNG, electric as well as hydrogen fuel cells," the minister added.

Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman on Monday announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.