Govt. aims to develop vehicle scrapping facilities within 150 km from city centres

Union Minister Nitin Gadkari on Saturday said his aim was to develop at least one automobile scrapping facility within 150 km from each city centre, while asserting that the country had the potential to become a vehicle scrapping hub for the entire South Asian region.

Speaking at a Material Recycling Association of India (MRAI) event here, Mr. Gadkari said the National Vehicle Scrappage Policy was a key initiative in the Indian transport and sustainability sector, and would enable the removal of older and unfit vehicles and the introduction of new, lesser-polluting vehicles in a phased manner.

“My aim is to develop a vehicle scrapping centre within the reach of 150 km from all the city centres,” the Road Transport and Highways Minister said.

He noted that his Ministry had designed the vehicle scrapping policy in a way that allows all types and sizes of investors to come in and establish scrapping centres.

“Developing a large number of vehicle scrapping centres, we can also develop multiple authorised collection centres of vehicle scrapping units in one city, which will have the authority to deregister a vehicle and issue deposit certificates,” he said.

Prime Minister Narendra Modi had introduced the National Vehicle Scrappage Policy in August last year and had said it would help phase out unfit and polluting vehicles and also promote a circular economy.

He had also said that the material recycling sector gave direct and indirect employment to 4 crore people and that this number was expected to increase to 5 crore by 2025.

At Saturday’s event, Mr. Gadkari said: “India has potential to become a vehicle scrapping hub of the entire South Asian region. We can import a large number of old vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka for scrapping in our country.”

“The technology used for scrapping will be the game changer in deciding the economics of scrapping and recycling,” he said, adding that the equipment could be installed at the scrapping unit to maximise raw material extraction or dismantling equipment.

Mr. Gadkari also asked metal recycling industry leaders to open vehicle scrapping centres in 112 aspirational districts of the country to create more employment opportunities in these districts.

Under the new policy which took effect on April 1, the Centre had said States and Union Territories would provide up to 25% tax rebate on road tax for vehicles purchased after scrapping old vehicles.

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.