Ludhiana, July 10 (KNN) Chamber of Industrial and Commercial Undertaking (CICU) has the centre to introduce vehicle scrappage policy in order to boost the automobile sector.

In this regard, the industrial body has written a letter to the Prime Minister’s office stating that the policy will not only help owners to get an incentive for old polluting vehicles with low value but will also boost the automobile sector which is facing a crisis due to the ongoing coronavirus pandemic.

S Upkar Singh Ahuja, President, and Pankaj Sharma, General Secretary, CICU in a press release, jointly said that the long-delayed and much-awaited vehicle scrappage policy should be introduced by the government to boost India's auto manufacturing. Due to lockdown, the automobile industry is currently reeling under a big recession.

''The vehicle scrappage policy will help the economy by reducing old polluting vehicles on Indian roads and looks at confining them to the scrapyard. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrap yards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment,'' said J S Bhogal, Organizing Secretary, CICU.

These measures could be equally important benefits in such a sector then going to the market for new vehicles, which could boost demand, and re-using/recycling the scrap materials like steel and aluminum for manufacturing new vehicles. It will help the steel industry with better availability of scrape similar is with Aluminum and plastics recycling industry.