April 15, 2021

Autos Scrapping Coverage: Scrapping coverage to cowl over 1 crore autos, see new investments value Rs 10,000 crore: Govt

New Delhi: Finance Minister Nirmala Sitharaman on Monday introduced the much-awaited voluntary car scrapping coverage to section out previous and polluting autos.

Presenting the Price range for 2021-22 in Parliament, Sitharaman mentioned that below voluntary car scrapping coverage, private autos would bear health check after 20 years whereas business autos would require it after completion of 15 years.

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Welcoming the coverage, Street Transport, Highways and MSMEs Minister Nitin Gadkari mentioned the coverage will result in new funding of round Rs 10,000 crore and create as many as 50,000 jobs.

He additional mentioned the coverage would cowl over 1 crore gentle, medium and heavy motor autos.

“The coverage would cowl an estimated 51 lakh gentle motor autos (LMVs) which might be above 20 years of age, whereas one other 34 lakh LMVs are above 15 years. It might additionally cowl 17 lakh medium and heavy motor autos, that are above 15 years, and presently with out legitimate health certificates,” Gadkari mentioned.

These autos are estimated to trigger 10-12 instances extra air pollution than the most recent autos, he mentioned.

Outlining the advantages of the coverage, Gadkari mentioned it could result in recycling of waste steel, improved security, discount in air air pollution, decrease oil imports as a consequence of higher gas effectivity of present autos, and stimulate funding.

He mentioned the finer particulars of the coverage shall be unveiled inside 15 days.

Throughout her speech, Sitharaman mentioned that particulars of the scheme shall be individually shared by the Street Transport and Highways Ministry.

“We’re individually asserting a voluntary car scrapping coverage to section out previous and unfit autos. This may assist in encouraging gas environment friendly, setting pleasant autos, thereby lowering vehicular air pollution and oil import invoice,” she mentioned.

Autos would bear health exams in automated health centres after 20 years in case of private autos, and after 15 years in case of economic autos, she added.

On July 26, 2019, the federal government had proposed amendments to motorized vehicle norms to permit scrapping of autos older than 15 years in a bid to spur adoption {of electrical} autos.

“Now we have submitted the proposal and I’m anticipating that we are going to get approval as early as doable for the scrapping coverage,” Gadkari had mentioned on January 15.

The minister had additionally mentioned that after the coverage is accepted, India will develop into an vehicle hub and there may also be discount within the costs of cars.

He had mentioned recycled materials from previous autos will assist cut back the costs, including that the car business’s turnover, which is Rs 4.5 lakh crore with Rs 1.45 lakh crore exports, will get a lift.

Earlier, Finance Minister Nirmala Sitharaman had mentioned {that a} coverage for scrapping of previous autos “is within the works” and shall be introduced after ministries involved “fine-tune” it.

In Might 2016, the federal government had floated a draft Voluntary Car Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old autos off the highway.