Automobile

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Scrappage policy will lead to new investment of Rs 10000 crore create 50000 jobs Nitin Gadkari

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scrappage policy, old car, budget 2021, scrap metal,

Union Road Transport and Highways Minister Nitin Gadkari said that the details of the scrappage policy will be declared within 15 days.

Welcoming the voluntary scrappage policy announced in the Union Budget 2021, Road Transport and Highways Minister Nitin Gadkari today said that it will lead to new investment of nearly Rs 10,000 crore and create as many as 50,000 jobs. The details of the policy will be declared within 15 days.

According to Gadkari, the scrappage policy will cover an estimated 51 lakh light motor vehicles that are above 20 years of age and another 34 lakh such units older than 15 years. The policy would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.

"These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles," Gadkari said in his post-budget media interaction.

The scrappage policy would lead to old, unsafe and unfit vehicles being phased out. It will also help in reducing air pollution and oil imports as the new vehicles are far more fuel-efficient.

While presenting the Union Budget 2021, Finance Minister Nirmala Sitharaman today said that the voluntary scrappage policy will help in encouraging fuel-efficient, environment-friendly vehicles, thereby, reducing vehicular pollution and oil import bills.

Industry reactions on voluntary scrappage policy

"We welcome the policy stability that the budget provides to the industry by no new announcement of direct taxes, though we would have liked some reduction in compensation cess. It's good to see some positive movement through the scrappage policy and we also expect the capital expenditures to indirectly help the industry," Mercedes-Benz India MD and CEO Martin Schwenk said.

As per Tata Motors MD and CEO Guenter Butschek, for the automobile sector, which is a significant contributor to India's GDP, there are multiple welcome announcements in the Union Budget 2021, including a voluntary vehicle scrapping policy to phase out old and unfit vehicles, augmenting public transport system in urban areas, continuing focus on adoption of cleaner fuels, and enhancing outlays for developing road infrastructure.

 

"From an auto industry perspective, the long-awaited voluntary Scrapping Policy can help take older vehicles off the roads thus contributing to lower fuel consumption, pollution as also generating additional demand for cleaner new vehicles. The auto sector welcomes this announcement and is hopeful that for realizing full benefits there will be an early and full implementation of this policy," Toyota Kirloskar Motor Vice-Chairman Vikram Kirloskar said.

Skoda Auto Volkswagen India MD Gurpratap Boparai said that the Union Budget 2021 augers well to create capacity for development and growth in the country. He added that the increased outlays in the road sector, infrastructure development and introduction of the voluntary vehicle scrappage policy will not only create a safer and environment-friendly auto sector but also drive replacement demand in the sector.

 

Source: INDIA TODAY

scrappage policy, old car, budget 2021, scrap metal,

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