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India – Scrappage Policy will lead to new investment and create thousands of jobs

Sh. Nitin Gadkari said that the scrappage policy will lead to new investment of around Rs.10,000 crores, and create as many as 50,000 jobs.


India - Scrappage Policy will lead to new investment and create thousands of jobs f fourUnion Minister for MSME and Road Transport & Highways, Sh. Nitin Gadkari welcomed the Voluntary Scrappage Policy announced in the Union Budget.

The Minister said the policy would cover an estimated 51 lakh light motor vehicles (LMV) that are above 20 years of age, while another 34 lakh LMVs are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.

These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles. Outlining the benefits of the policy, Sh. Gadkari said it would lead to the recycling of waste metal, improved safety, reduction in air pollution, reduction in oil imports due to greater fuel efficiency of current vehicles, and stimulate investment.

Sh. Gadkari also welcomed the increased outlay for the highways sector, to Rs. 1,18,000 crores, with the highest-ever capital investment of Rs.1,08,000 crores. While welcoming the increased allocation, the Minister said that the Ministry’s increased stress on the monetisation of highways will help in expanding the road network in the country.

According to an article published in the Economic Times (India Times) (5th February), a senior government official has said that ‘incentives as part of the vehicle scrapping policy is in the works, and could be unveiled in the next two to three weeks.’