Union Road Transport and Highways Minister Nitin Gadkari on September 6 confirmed that the vehicle scrappage policy is in its final stages of approval and is likely to be rolled out within a month.
Terming it as 'very important' for the auto industry revival, Gadkari told Mint the policy could even come as soon as September-end.
Gadkari also apologised for delay in the rollout, adding: “We will clear this policy with approval of the highest authorities. We are definitely going to open up this policy, which can be a win-win for Indian manufacturers.”
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The vehicle scrappage policy aims to provide customers incentives in exchange of old vehicles, which in turn will be used in recycling clusters – ultimately cutting cost of raw materials. It is also expected to boost demand for new vehicles in a COVID-hit economy.
Highlighted that the policy could allow India to become an automotive manufacturing hub over the next five years, Gadkari asked industry stakeholders to reduce dependence on imports. He added that the Centre is looking to increase duties on certain imported parts in the near future.
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