Speaking at the 60th annual virtual session of ACMA, Union Minister Nitin Gadkari said that the central government is in the final stages of implementing the auto scrap policy. Gadkari said that the scrap policy can be approved by the central government within a month or so.
In this policy, customers will be given incentives to buy new vehicles by giving their old vehicles to the government. This will benefit customers and automobile companies. "With this policy, all the old vehicles running in India will also be removed from the roads with immediate effect which increases the environmental pollution," said Nitin Gadkari.
According to a report, the new scrap policy will benefit the government of Rs 9600 crore this year. It will have a profit of 41,900 crore in the next five years. At the same time, vehicle owners are expected to get a discount of Rs 3600 crore in GST.
Hit by Covid-19
If the new scrap policy comes into effect in a month, it will help in handling the automobile sector of the country as the automobile sector is going through the biggest recession of two decades from 2019. At the end of the year 2019, the automobile sector was eclipsed by the coronavirus epidemic.
Due to this, the automobile sector suffered heavy losses as the production of vehicles came to a complete standstill due to the epidemic as well as customers stopped buying vehicles. However, it is expected that this situation will improve rapidly after the new scrap policy and automakers have also supported this policy. Although the scrap policy is now in its final stages, the automakers must have breathed a sigh of relief.
This policy is already in force in countries like America, China, Canada, Britain and now India too can join the list of these countries soon. The emission of greenhouse gases will be reduced considerably as compared to the earlier after the Scrap policy is implemented.