Updated: February 1, 2021 1:27:14 pm
Union Finance Minister Nirmala Sitharaman’s announcement of a voluntary vehicle scrapping policy was cheered by the automobile and auto ancillary sector in Pune. The policy has now allowed scrapping of commercial vehicles more than 15 years while private vehicles over 20 years will be scrapped after inspection.
A scrapping policy which would see the phasing out of vehicles both private and commercial has been a long time demand from the industry. Union Minister of Road and Transports Nitin Gadkari had earlier claimed recycling would reduce the price of vehicles by 20-30 per cent. Various reports had pegged the opportunity of this market at over Rs 40,000 crore.
Old vehicles if scrapped would make available raw materials like aluminium, copper etc which would bring down the import bill. Also phasing out of old vehicles would allow more fuel efficient vehicles to come on roads there by reducing the pollution burden.
For Pune and Pimpri Chinchwad small and medium scale industries, the scrapping policy would mean a much needed boost for their business. As automobile OEMs churn out more replacements the need for components would increase and thus would mean more business for them. Recycling of raw materials, they hope, will also provide cheaper raw materials.
Sandeep Belsare, chairman of Pimpri Chinchwad Small and Medium Scale Industries Association, said the need of inspection after 20 years could have been done away with. “The time frame for scrapping should have been made 15 years uniform,” he said.
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