The Union Road Transport and Highways Minister, Nitin Gadkari unveiled the national automobile scrappage policy recently. This policy will give benefit to all stakeholders because it will not only increase manufacturing, but it will also create jobs. It will also assist state and central government to earn up to Rs. 40,000 crore each in GST. The price of vehicles will come down with cheap raw materials and as a resultant, increase their sales and GST collection, said Nitin Gadkari.
He further added that Alang ship-breaking yard in Bhavnagar and the Kandla port in Kutch can play a significant part in fulfilling India’s dream of becoming the scrap recycling hub of entire South-East Asia. During Investor Summit, Narendra Modi, the Prime Minister of India, attended this event virtually, introduced the policy aiming at recycling unfit and old vehicles. He told that the overall cost of raw material by 40% as the scrap will provide rubber, plastic, steel, aluminium, and copper to the industry.
The minister told the invitees that the ministry gave a request to automobile companies to provide 5% discount to all those who will deposit their vehicles for scrapping. If we talk about neighbouring countries, they don’t have any scrapping infrastructure.