PM MODI LAUNCHED NATIONAL AUTOMOBILE SCRAPPAGE POLICY TODAY VIA VIDEO CONFERENCING
New Delhi, August 13, 2021: Prime Minister Narendra Modi will launch the National Automobile Scrappage Policy today, during ‘Investors Summit for setting up Vehicle Scrapping Infrastructure’ in Gujarat.
Union minister of Road Transport & Highways tweeted late on Thursday that “Hon’ble PM Shri @narendramodi ji will launch National Automobile Scrappage Policy during ‘Investors Summit for setting up Vehicle Scrapping Infrastructure’ in Gandhinagar, Gujarat”.
The investors summit is being organized to invite investment for setting up vehicle scrapping infrastructure under the Voluntary Vehicle-Fleet Modernization Program or the Vehicle Scrapping Policy, said Prime Minister’s Office in a statement.
On the occasion Nitin Gadkari was also present, and delivered the speech. The whole summit is being conducted through video conferencing, adapting the new digital way of technology.
The summit is being organised by the Ministry of Road Transport and Highways (MoRTH) and the Gujarat government. It is held in Gandhinagar, Gujarat and is seeing participation from potential investors, industry experts, and central and state governments concerned.
The Vehicle Scrapping Policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environment friendly and safe manner, said the statement.
Scrappage is the process in which ELV (End of Life Vehicle) is disposed off. This may be done using shredders that tear them down into tiny pieces of metal which can then be recycled too. Other non-metal parts of the vehicle are then disposed off in a sustainable process.
Automobile Industry is the highest revenue-producing sector which also contributes to the employment of a large number of people in the country; Government is looking forward to provide all needed support to make this industry #AatmaNirbhar: Union Minister @nitin_gadkari pic.twitter.com/Qf221Mq2Et
— PIB India (@PIB_India) August 13, 2021
Vehicle scrappage has occupied the pockets of the unorganised sector in India for the longest time. With availability of cheap vehicle parts, Delhi’s Mayapuri is home to the largest scrap market in Asia. This popularity is also enjoyed by similar markets of Kurla in Mumbai, Shivajinagar in Bengaluru and Pudupet in Chennai.
It may be noted that the scrap market at Mayapuri, which is more like the funeral ground for the vehicles, has been so in demand that its annual turnover is estimated to be around Rs 6,000 crore. Even though there are no statistics available for the number of people employed in the market, CPCB estimates that currently, about 3,000 shops operate in the area.
However, with no rules and regulations in place, scrap dealers in these places are highly profit-driven. The process and condition the scrap manually, openly disposing off the waste products.
The country’s vehicle scrappage policy was introduced in the 2021 budget session.
In October 2019, draft guidelines on Authorised Vehicle Scrappage Facility (AVSF) released by the Ministry of Road Transport and Highway (MoRTH) detailed the infrastructure requirement and the procedure, streamlining the process for entities interested in entering this business.etu
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