National automobile Scrappage policy is win-win policy: Nitin Gadkari
Union Minister for Road Transport and Highways, Shri Nitin Gadkari has said that National automobile Scrappage policy is mutual win-win policy for all the stakeholders. Inaugurating the Vehicle Scrapping and Recycling Facility set up by Maruti Suzuki Toyotsu India Private Limited (MSTI) at Noida today he said the policy aims at creating an ecosystem for phasing out unfit and polluting vehicles from the Indian roads and to meet this objective state-of-the-art scrapping and recycling units are needed.
Why National automobile Scrappage policy is win-win policy?
He further stated that the National automobile Scrappage policy will lead to increment in automobile sales provide employment, reduce import cost, generate incremental GST revenue and help to solve the global shortage of semiconductor chip.
The minister recently launched Voluntary Vehicle-Fleet Modernisation Program (Vehicle Scrapping Policy). He further stressed that the existing vehicle dismantling and recycling industry in India’s unorganized and recycling of older vehicles is not done in an environment-friendly manner. This not only leads to inefficient resource management, but also non-realisation of the full value of high-strength steel alloys and recovery of valuable rare-earth metals. ELV scrapping cycle has a low recovery percentage and many materials get wasted or are not properly recycled. Further quoting a statistic, as per unofficial industry estimates, the recovery percentage in India is about 70-75%, while global benchmarks for recovery from scrapped vehicle are in the range of 85-95%.
Registered Vehicle Scrapping Facility (RVSF)
The Registered Vehicle Scrapping Facility (RVSF) inaugurated by Minister has been set up in an area of 11,000 sqm with a capacity of handling 24,000 vehicle per year. The plant has been set up by Maruti Suzuki India Ltd in collaboration with Toyota Tshusho Group. Shri Gadkari congratulated Maruti Suzuki and Toyota Tshoshu Group and also requested other stakeholders to come forward to create similar ultramodern scrapping and recycling facilities to help achieve the aims of the Policy.