Vehicle recycling clusters could be set up near ports in India: Nitin Gadkari


Vehicle recycling clusters could be set up near ports in India: Nitin Gadkari

Vehicle recycling clusters could be set up near ports in India: Nitin Gadkari&nbsp

Nitin Gadkari, Union Minister for Road Transport and Highways, has finally shared some new piece of information about India’s upcoming vehicle scrappage policy in a really long time. He said that vehicle recycling plants could be set up near ports in the country. Gadkari shared this information during a virtual discussion with MIT ADT University representatives regarding the future of higher education. And about the “when”, i.e. WHEN will the government actually announce the vehicle scrappage policy, he had that old chestnut to share: The government is set to announce it soon and that it will deliver a massive boost to the country’s automobile industry. 

We reckon NOW, i.e. when the sector is reeling from humongous losses and struggling to shore up demand, would be a good time to announce the policy. I mean even the industry has long demanded the policy, with the insistence only growing now that the coronavirus pandemic has further exacerbated the industry’s struggle with declining sales. But what do we know? On a side note: It was widely believed that the government would finally announce the vehicle scrappage policy in India, along with a reduction in GST rates on cars and two-wheelers, during one of the tranches of announcement for 20 lakh crore stimulus package. Once again, that didn’t happen and nobody knows when it actually will.

Now, let’s go back to what Gadkari said about the scrappage policy; according to a PTI report, the minister revealed that the government will increase the depth of India’s ports by 18 metres and that automobile clusters consisting recycling plants could be established near the ports. He went on to add that the recycled material thus gained from scrapping old vehicles will enable the automotive industry to lower manufacturing costs and thus boost India’s competitiveness on the world stage.

Nitin Gadkari said, “Within five years, India will be the number one manufacturing hub of all cars, buses and trucks, with all fuel, ethanol, methanol, bio-CNG, LNG, electric as well as hydrogen fuel cells.”

And now it is time for the reminder about just how long it has been since the plans to announce a vehicle scrappage policy for India was first announced — you know, as we do with every single story about this particular subject matter. Last year, the government of India proposed amendments to the motor vehicle laws to enable scrapping vehicles older than 15 years. Later, in a draft notification, the government also proposed that new vehicle buyers could be offered incentives such as exemption from registration fees provided they furnish a scrapping certificate for their previously-owned vehicle in the same category.

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