Tribune News Service
Chandigarh, February 1
Finance Minister Nirmala Sitharaman while presenting the Budget today stressed on the vehicle scrappage policy. According to her, more funds will be allocated towards scrapping of old vehicles by the Central government. She said the Central government will support state governments to scrap old vehicles and ambulances.
“The Budget has laid special emphasis on the Vehicle Scrappage Policy which will not only boost the sales but will also help in achieving clean and green environment for overall sustainable development. Additional funds infusion in the scrappage policy is a remarkable step and is in the right direction to achieve India’s goal of being carbon neutral by 2070. This policy would eventually help the entire ecosystem of automotive industry as this will translate into growing order books of OEMs, increased output and job creation,” said Venkatram Mamillapalle, Country CEO & Managing Director, Renault India.
The automobile industry foresee that it will witness an increase in sales with the introduction of new tax rebate limit on personal income which has been raised from Rs 5 lakh per annum to Rs 7 lakh per annum. This step is likely to help the sector as more disposable income with salaried customers may give supplementary push to demand for personal vehicles.
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