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New Vehicle Scrappage Policy is an important link in the circular economy of Waste to Wealth: Prime Minister

PM greets sportspersons on National Sports Day

Gandhinagar

Digitally Dedicating a new vehicle scrappage policy to the nation, Prime Minister Narendra Modi said that, mobility is a very important aspect for the nation’s economy and modernization will not only reduce the travel and transportation burden, but also accelerate economic growth. The goal of Clean, Congestion Free and Convenient Mobility, is the need of the hour for 21st century. All the representatives of the automobile industry, all the stakeholders have an important role to play in this.

PM addressed the Investor Summit organised under the Voluntary Vehicle-Fleet Modernization Program(V-VMP) at Mahatma Mandir in Gandhinagar via video conference. He termed  program ahead of the country’s 75th Independence Day as an important step towards a self-reliant India, likening the new scrappage policy to a campaign to make waste to wealth.

Modi said the new scrapping policy is an important link in the circular economy and in the waste to wealth campaign. This policy also reflects our commitment to reduce pollution from the cities of the country and protect the environment and fast development. This policy by following the principle Reuse, Recycle and Recovery will also promote the country’s self-reliance in the auto sector and in the metal sector. The Policy will bring in a fresh investment of more than Rs. 10 thousand crores and will create more than 50 thousand of jobs.

Prime Minister said that this policy is going to give a new identity to the auto sector and to the mobility of New India. This policy will play a big role in the modernization of the vehicular population in the country, removing unfit vehicles from the roads in a scientific manner. He said that modernity in mobility, not only reduces the burden of travel and transportation, but also proves to be helpful for economic development.

Prime Minister stressed that as India is about to enter the 75th year of Independence the next 25 years is very important. He said there would be many changes in the way of working the business and in everyday life in the next 25 years. He said in the midst of this change, it is equally important to protect our environment, our land, our resources and our Raw Material.

PM remarked that , on one hand India is exploring new possibilities through the Deep Ocean Mission, while on the other it is also encouraging a circular economy. He added that the effort is to make development sustainable and environment friendly. He highlighted the unprecedented work done in the energy sector. India has entered in the front ranking countries in the field of solar and wind energy. Shri Modi emphasized that this waste to wealth campaign is being linked with Swachata and Aatmnirbharta.Recycling is being promoted. Automobiles have also been linked to similar efforts. This will greatly benefit many ordinary families.

Detailing on the benefits of the policy Modi said that, general public will be benefited greatly through this policy in every way. A certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle. Along with this, he will also be given exemption in road tax. Apart from this, one will be benefited in maintenance cost, repairing, fuel efficiency of the new vehicle.

The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. In addition, the fitness of the vehicles under this new policy will not only be checked not as per its age, but also in a completely scientific way. It will reduce the harmful impact of pollution on our health.

Referring to Alang Ship Breaking Yard in Bhavnagar, he said that Alang has become a hub of ship recycling and Alang’s share in the sector is increasing in the world. This has created thousands of new employment opportunities. And now it will also become a hub for scrapping vehicles after ships. As a result, there will be new energy in this direction and many improvements in the lives of the workers involved in this business. They will also get benefits like other workers in the organized sectors.

Prime Minister lamented the fact that we had to import 23,000 crore worth of scrap steel during the last year as our scrapping is not productive and we are not able to recover energy and rare earth metals. Continuous steps are being taken to make Indian Industry sustainable and productive for speeding the process of Aatmnirbhar Bharat. He emphasized that it is our effort to reduce dependence on imports with regard to the value chain of auto manufacturing. Precious metals cannot be recycled, but scientific methods can be used to recycle rare earth metals. Having enough scrap from the country will make it less dependent on imports. Which will benefit and gain new momentum towards becoming a self-reliant India in the coming 25 years.

Prime Minister said that , when the country is moving towards clean, congestion free and convenient mobility, there is a need to change the old approach and practices. Today’s India is committed to provide global standard safety and quality to its citizens and this thinking is behind the transition from BS-4 to BS6. said that be it ethanol, hydrogen fuel or electric mobility, with these priorities of the government, active participation of the industry is very important. From R&D to infrastructure, the industry has to increase its partnership and assured that the government is ready to provide all sort of help.

Launching the new scrappage policy from Gujarat, Modi said that circular reform is not a new thing for Gujarat. Elder women of Gujarat are doing its since years by using torn clothes for many purposes. Now, we congratulate the state government for taking forward this campaign of making Wealth from waste.

Union Minister for Road Transport & Highways,. Nitin Gadkari said that is a very important day in the history of automobile industries in India. If there is one industry in the country that provides the most employment, pays the most taxes to the government and promotes exports the most, it is the automobile industry. As this industry certainly has a significant role and contribution to play in the way we want to make this country economically prosperous with the help of new policies in building a self-reliant India, we have been preparing this policy since 2018 by studying it thoroughly.

Gadkari said that we have taken important decisions in terms of pollution control in the Paris Summit held under the guidance of the Prime Minister.

Gadkari further said that for ecology and environment, we have taken various measures and formulated specific policies in which the production of BS-4 engine of the vehicle has been banned and BS-6 engine technology has been made operational. Petroleum companies also have given their cooperation for it. We have placed special emphasis on pollution control as well as vehicle fitness and road safety. We have also made air bags mandatory for road safety in economy models, too.

Gadkari added that the biggest problem we had was that an estimated one crore vehicles in India were running without fitness which was detrimental not only to pollution but also to safety and this was the main factor in preparing the Scrappage Policy.

Scrapping old vehicles will reduce pollution by 10 to 12 per cent. The automobile sector has a turnover of Rs 7.5 lakh crore and is directly or indirectly providing employment to about 3.7 crore people.

The primary criterion of this policy is determined on the fitness of the vehicle and for this we will also provide special encouragement for the construction of vehicle fitness centers with PPP model at the district level across the country. This policy will boost the manufacturing sector which will significantly lead to savings. In the manufacturing sector, wastes will result from metals including aluminum, steel, copper, and plastics, which will reduce vehicle production costs and increase employment. The new vehicles that will be produced shall provide better safety to the users due to road safety rules and vehicles will get cheaper due to reduction in raw material prices. The fall in prices will lead to new competitions in research sector in the international market, resulting in increased exports, benefits to government and increased employment. Increase in production will benefit the government by Rs 30,000-40,000 crores in GST. There will be a five per cent discount on the purchase of new vehicles. Scraping centers and fitness centers will be set up in the district itself so that owners do not have to go far to scrap vehicles. Under this policy, an Integrated Recycling Hub will be developed at Alang. The goal is to make India a hub in recycling sector in five years.

Welcoming the Vehicle Fleet Modernization Policy, Chief Minister Vijay Rupani said that Prime Minister Narendra Modi has laid a strong foundation for the development of Gujarat and our government is committed to take the development of Gujarat forward on the path shown by him. This will definitely give a new direction to Gujarat in moving toward becoming the best.

CM added that when the world was in recession due to the global pandemic, Gujarat, from April 2020 to March 2021, had 37 per cent share of total FDI in India, receiving the highest FDI of 1.62 lakh crores. This has been made possible due to foresightedness of our government.

CM added that Gujarat is the largest automobile hub in India which has resulted in many giant companies like Tata, Ford, Honda, Suzuki and many other big manufacturing companies in Gujarat. The growing development of the state has resulted in a huge increase in the presence of large automotive manufacturers and the number of vehicles registered in the state. In order to protect the environment, it has now become necessary to make efforts to scrap used vehicles and develop facilities for it.

CM said the policy would strengthen the economy of the automotive industry and significantly reduce the number of old and defective vehicles. It would also play a key role in reducing air pollution to meet India’s commitment toward climate.

Chief Minister added that the new business model in the country would make a significant contribution by giving a new direction and promoting the reuse and recycling of materials. Today 9% of India’s registered vehicles are in Gujarat. The world’s second largest ship recycling yard is also operating at Alang, where the facilities of vehicle scraping and recycling are already available with a complete ecosystem for it. The Department of Transport will play a leading role in the successful implementation of this policy as Gujarat seeks to take advantage of the existing ecosystem and attract investments to set up registered vehicle scrapping facilities and automated fitness centers. Due to today’s event, Gujarat will become the leading state in India in the implementation of Vehicle Scrapping Policy, too.

The Chief Minister thanked the Prime Minister and the union minister for Road Transport and Highways for organizing the Summit on Vehicle Fleet Modernization Program. He added that as a result of Gujarat Dholera Expressway project, new doors of development have opened in the state. Dholera Expressway Corridor will encourage many new facilities for sustainable industrial development in Dholera and create new employment opportunities. Due to constant efforts of the state government and new employment-related policies, we have been able to bring the state’s unemployment rate to 1.8 per cent by August 2021. As a result, Gujarat has the lowest unemployment rate among Indian states.

The Chief Minister added that the state government has recently implemented Gujarat Electric Vehicle Policy and Gujarat Integrated Logistics and Logistics Park Policy. Along with development, these policies will play a vital role in making environmental-friendly technology, efficient logistics and for developing desirable center for automobile manufacturing and recycling. India is the fifth largest auto market in the world. The number of registered vehicles in India so far is about 273 million. Of these, 28 million vehicles could be scrapped by 2025. At present, the Indian steel industry imports about 6 to 7 million tons of steel scrap annually. The state government will attempt to reduce the import of this steel by recycling scrap steel of old vehicles. This collective initiative will play a vital role in the ‘Atmanirbhar Bharat ‘ campaign and at the same time it will redefine India’s position in the global automobile recycling market.

Sharing the key elements and presentation of the new Vehicle Scrapping Policy, Secretary to Ministry of Road Transport, Giridhar Aramane said that the policy would be instrumental in enriching the nation towards a self-reliant India. This Vehicle Scrapping Policy focuses on ‘vehicle fitness’ instead of ‘vehicle age’. It will further benefit vehicle owners from vehicle scrapping to purchase of a new vehicle.

Giridhar added that the implementation of this policy will be of great benefit to Gujarat. Scrap vehicles from all over the world will come to the ports of Alang and Kandla in Gujarat and will also create a lot of employment here. Alang will be built as a hub in the vehicle scrap sector. Under this policy, modern and organized vehicle scraping and testing centers will be set up. The entire vehicle scrapping facility will be provided with a single window operating system integrated with a vehicle portal.

On this occasion, a guide for creating vehicle scrappage ecosystem under Voluntary Vehicle Fleet Modernization Program (V-VMP) was released in virtual presence of Prime Minister Mr. Narendra Modi. A total of 6 MoUs between the Government of Gujarat and private companies for various sectors and 7 MoUs between Assam and the Government of Gujarat were done.

Additional Chief Secretary to the Chief Minister, M. K. Das in his presentation said that Gujarat is the economic engine of the country. During the year 2017 to 2021 FDI Growth has increased 10 times. The state has done great work in India startups as well. Gujarat Government has formulated more than 20 business environment policies. Gujarat is an excellent place to invest as he spoke in detail about various facilities like roads, water, electricity, gas, railways, transport as well as the new Industrial Policy 2020.

On this occasion, the Minister of State for Transport R. C. Faldu, Chief Secretary of the State Anil Mukim, Chief Principal Secretary to the Chief Minister K. Kailashnathan, CEO of Gujarat Maritime Board Avantika Singh, Commissioner of Transport L. P. Padalia, Secretary of Central Government Transport Department Pradip Tripathi and other invited industrialists were present.