Union Minister Nitin Gadkari said on Saturday his aim was to develop at least one auto scrapping facility within 150 kilometers of every city center, while saying the country had the potential to become a vehicle scrapping hub throughout the South Asian region.
“My objective is to develop a car waste collection center 150 km from all city centers,” said the Minister of Road Transport and Roads.
Gadkari noted that the Ministry of Road Transport and Highways has designed the vehicle scrapping policy to allow all types and sizes of investors to come and set up scrapping centers.
“By developing a large number of vehicle scrapping centers, we can also develop several authorized collection centers of vehicle scrapping units in a city, which will have the power to deregister a vehicle and issue certificates of deposit”, did he declare.
Prime Minister Narendra Modi had launched the National Vehicle Scrappage Policy in August last year and said it would help phase out unclean and polluting vehicles and also promote a circular economy.
He had also said that the material recycling sector gives direct and indirect employment to 4 crores of people and that this number is expected to reach 5 crores by 2025.
Speaking at Friday’s event, Gadkari said, “India has the potential to become a vehicle scrapping hub in the entire South Asian region. We can import a large number of vehicles elders from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka to dispose of them in our country.”
The Minister also observed that there is a challenge in establishing a circular economy to maximize the value of scrap or end-of-life vehicles.
“The technology used for disposal will be a game-changer in deciding the economics of disposal and recycling,” he said, adding that the equipment can be installed in the disposal unit. scrap to maximize raw material extraction or dismantling equipment.
Gadkari also called on leaders in the metal recycling industry to open vehicle scrapping centers in 112 aspirational districts across the country to create more employment opportunities in these districts.
Under the new policy which will take effect on April 1, 2022, the Center said states and union territories will offer up to 25% tax reduction on road tax for vehicles purchased after scrapping old vehicles.
Announced in the 2021-22 Union Budget, the policy provides for proficiency testing after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.