Union Minister of Road Transport and Highways, Nitin Gadkari, announced on Tuesday that major passenger and commercial vehicle manufacturers have agreed to offer discounts to buyers who scrap their older vehicles and present a valid Certificate of Deposit. This decision follows a meeting chaired by Gadkari with the CEOs of the Society of Indian Automobile Manufacturers Association (SIAM), where pressing issues within the auto sector were discussed.
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---Advertisement---Chaired a highly productive session of the SIAM CEOβs Delegation Meeting at Bharat Mandapam today, where we addressed various critical issues facing the automobile industry.
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---Advertisement---β Nitin Gadkari (@nitin_gadkari) August 27, 2024
Boost for Circular Economy and Cleaner Roads
Taking to X (formerly Twitter), Nitish Gadkari expressed his satisfaction with the move. He also praised the automobile companies for their role in the Vehicle Fleet Modernisation Programme.
Discounts for Buyers Scrapping Old Vehicles
Automobile manufacturers in India are expected to offer buyers a discount of 1.5-3.5 per cent on the purchase of new vehicles when they scrap their old ones. The initiative is part of the governmentβs ongoing efforts to promote a greener and more efficient transportation system.
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Vehicle Scrappage Policy: A Win-Win for Stakeholders
The National Vehicle Scrappage Policy, launched by Prime Minister Narendra Modi in August 2021, aims to phase out unfit and polluting vehicles and promote a circular economy. The policy, which came into effect on April 1, 2022, requires fitness tests for commercial vehicles after 15 years and personal vehicles after 20 years. States and Union Territories have also been directed to provide up to a 25 per cent tax rebate on new vehicles purchased after scrapping older ones.
Expanding Scrappage and Fitness Centres
The minister had previously emphasized the need for 1,000 vehicle scrapping centres and 400 automated fitness test centres across India. He also highlighted the potential for India to become a scrapping hub for South Asia, adding, βCircular economy is very important and it is going to create jobs in the country.β
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