The Union Minister for Road Transport and Highways, India claims that the policy to scrap 15-year old vehicles is soon expected to get government approval.
According to TimesNowNews, the new policy will not only include cars but also trucks and buses that are older than 15 years.
The proposal was first introduced in July 2019 in order to encourage the adoption of electric vehicles in India.
At an Atmanirbhar Bharat Innovation Challenge 2020-21 event, the minister said:
“We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy.”
The minister claimed that the new policy will reduce the prices of automobiles and also help build the nation as an automobile hub. The reduction in prices will be aided by the use of recycled materials from older cars.
“We will take scrap from all over the world and here we will make an industry where we can use all new material and the cost will be less… industry will be more competitive…we will get more export orders.”
He said the automobile industry’s turnover, which is ₹4.5 lakh crore with ₹1.45 lakh crore exports, will get a boost.
Finance Minister Nirmala Sitharaman said to the media after presenting Budget 2020-21 that the “scrappage policy is in the works … I would wait for the concerned ministries also to fine-tune everything and tie up the loose ends and then come to a stage where it can be announced by the ministry.”