Govt. of India: Cabinet note ready for vehicle scrapping policy; aluminium among others bound to be recycled, automobiles prices expected to drop by 20-30%

On 19^th September’20, the Government of India stated that a Cabinet note has been articulated for the vehicle scrapping policy.

The note has been articulated by "Ministry of Road Transport and Highways (MoRTH) for Cabinet on the development of an ecosystem for voluntary and environment-friendly phasing out of unfit and old polluting vehicles," Minister of State for Road Transport and Highways VK Singh told in the parliament.

The government had said earlier, that the proposed policy, once approved, will apply to all vehicles. The policy was sent for a fresh round of consultation with stakeholders in the direction of the PMO.

Nitin Gadkari, Minister of Road Transport and Highways, had earlier said in 2020 that once the policy is approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping aluminium and other elements that are bound to be recycled, bringing down automobile prices by "20-30%".

On 26^th July 2019, the government had proposed amendments to motor vehicle rules to permit the scrapping of vehicles older than 15 years in a bid to spur the adoption of electrical vehicles.

In a draft notification, the government proposed renewal of fitness certificates for vehicles older than 15 years every six months instead of the current time-frame of one year.

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