News

8 Aug 2018

Proposed vehicle-scrapping policy: PMO asks ministry for more consultation

The policy calls for scrapping of 20-year-old commercial vehicles paving the way for mandatory scrapping of such units from April 1, 2020.

The Prime Minister’s Office has red-flagged the proposed vehicle-scrapping policy of the Ministry of Road Transport and Highways in the present form and has directed that it be sent for another round of stakeholder-consultation.

The policy calls for scrapping of 20-year-old commercial vehicles paving the way for mandatory scrapping of such units from April 1, 2020.

“PMO has asked us for another round of consultation with stakeholders. Accordingly, we will be doing consultations with stakeholders, industry and consumers,” Road Transport Minister Gadkari said on Monday.

He said that after taking everyone’s views it will be sent back to the Prime Minister’s Office for approval.

Once the policy is approved, he said, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping like steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by “20 to 30 per cent.”

India is already a leading place for automobile industry with a turnover of Rs 4.5 lakh crore, he said. “I think there is a huge potential.” In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme

(V-VMP) that proposed to take 28 million decade-old vehicles off the road.

A committee of secretaries recommended to the ministry redesigning of the scheme for greater participation of states with partial support from the Centre.