Union Road Transport and Highways Minister Nitin Gadkari on September 10 said the country is in the process to double the number of vehicle scrapping centres and automated fitness test centres but it will still need more such facilities.
"India has 3 crore end-of-life vehicles, but the country does not have enough scrapping centres to process these vehicles," Gadkari said at the 64th Society of Indian Automobile Manufacturers (SIAM) Annual Convention.
He added that at the moment India has 63 operational vehicle scrapping centres, with 60 more under construction and an additional 40 in planning stage. The country has 78 operational automated fitness test centres, while 179 more are being built and 83 planned.
Gadkari has in the past said that the country needs 1,000 vehicle scrapping centres and 400 automated fitness test centres.
Noting that the National Vehicle Scrappage Policy is a win-win for all stakeholders, the minister said that India can be a scrapping hub in South Asia as it will help automobile companies reduce their raw material costs and will help India reduce the import of steel.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021 and said it would help phase out unfit and polluting vehicles and also promote a circular economy.
Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 percent rebate on road tax for vehicles that are purchased after scrapping old vehicles. The vehicle scrappage policy has come into effect from April 1, 2022.
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.
The road minister also announced that the Automotive Research Association of India (ARAI) is planning to invest around Rs 500 crore over a four-to-five-year period, as it looks to improve the testing infrastructure.
This investment by India’s vehicle testing and certification agency will go towards setting up testing infrastructure for hydrogen-internal combustion engine (ICE) vehicles and construction equipment, besides additional safety technologies.
The Pune-based agency has testing capabilities for ethanol 20-compliant vehicles. The Rs 500-crore investment is on top of the Rs 230 crore that ARAI is spending on infrastructure for safety technologies such as advanced driver assistance systems.
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