PM Narendra Modi launches vehicle scrappage policy

The scrappage policy is expected to bring in investments of around Rs. 10,000 crore

Prime Minister Narendra Modi has launched the Voluntary Vehicle Fleet Modernisation Programme, more commonly known as the vehicle scrappage policy. The announcement was made during his virtual address at the Investor Summit in Gujarat.

The Prime Minister stated that the scrappage policy will bring in investments of around Rs. 10,000 crore and insisted that Alang in Gujarat could become a hub for vehicle scrapping.

Nitin Gadkari, Minister for Road Transport and Highways, was also present at the summit. According to him, the scrappage policy is expected to reduce raw material costs by around 40%. It would help India become a manufacturing hub for automobiles.

Gadkari stated that testing centres will be set up in all districts across India, using the public-private partnership model.

Under the new vehicle scrappage policy, commercial vehicles over 15 years and personal vehicles that are more than 20 years old are eligible for scrapping.