Prime Minister Mr. Narendra Modi on August 13, 2021 rolled out the vehicle scrappage policy also being called as Voluntary Vehicle Fleet Modernisation Programme.
In a series of tweet, Modi said, "The launch of Vehicle Scrappage Policy today is a significant milestone in India's development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme".
"Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible", added Modi in the tweet.
Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible.— Narendra Modi (@narendramodi) August 13, 2021
In an online address at the Investor Summit in Gujarat, the PM said the introduction of vehicle scrappage policy is seen to result in investment inflow of Rs. 10,000 crore. Also, on the sidelines he said that the current methodology employed in material scrapping is inefficient. Moreover he said that Alang in the state of Gujarat can become the centre for vehicle scrapping.
On the occasion, Nitin Gadkari- Union Minister for Road Transport & Highways was also present in person and said that the scrappage policy might result in decline in raw material cost by as much as 40 percent. Also, he is of the view that the implementation of the policy will provide India an opportunity to become the industrial centre of automobile manufacturing.
Further he mentioned that testing centers will be established in all of the districts via the public private partnership (PPP) model.
On the move, Nifty Auto declined by a tad and was last seen trading lower by 0.03%