Union Minister Gadkari Urges Auto Industry To Support Vehicle Scrapping Policy

New Delhi, Sept 26 (KNN) Union Road Transport and Highways Minister Nitin Gadkari on Monday called upon all stakeholders to rally behind the vehicle scrapping policy.

Addressing a stakeholder consultation, Gadkari said it is a win-win situation for all.

The vehicle scrapping policy aims at phasing out vehicles which are more than 15-20 years old and encouraging the purchase of new ones.

Gadkari highlighted that several measures have been initiated to stimulate robust vehicle demand, including the development of a top-tier highway network, the introduction of electric buses, and the compulsory implementation of automated vehicle fitness testing.

He said the auto original equipment manufacturers (OEMs) should work towards ramping up their production capacity and support the country to become the largest auto industry in the world.

"Auto industry is the biggest beneficiary of this policy, they must come forward and support three main pillars," he added.

The minister said the industry should bring more investment in setting up automated testing stations and registered vehicle scrapping facilities, raise awareness amongst citizens about the policy benefits through their dealer network and offer a finalized discount percentage against certificates of deposit obtained by citizens on scrapping vehicles.

Road, Transport and Highways Secretary Anurag Jain also urged the auto industry to set up scrap centres and automated testing stations across the country.

At the meeting, emphasis was placed on the potential for the policy to increase automotive sales by approximately 8 percent and make a 0.5 percent contribution to the nation's GDP.

Consequently, Auto OEMs are encouraged to offer full-fledged support for the policy.  (KNN Bureau)