Waste to Wealth: Kanchan's campaign from waste is an important chain of circular economy: PM Modi
Vehicles older than 15 years will be sent for scraping.
Prime Minister Narendra Modi has announced a new scrap policy at the Mahatma Mandir in Gandhinagar, in which vehicles older than 15 years will be sent for scrap. PM Modi joined from Delhi via video-conferencing and announced a new scrapage policy, citing four benefits.
Scrapage policy of making kanchan from waste
The Prime Minister said in his speech that the new scrapage policy, Waste to Wealth - is an important chain of the circular economy of Kanchan's campaign from waste.
This policy demonstrates our commitment to rapid development with pollution of the country's cities and protection of the environment. This policy will benefit ordinary families in every way.
The benefits of the scrapage policy enumerated by PM Modi
The first benefit will be that you will get a certificate for scraping an old car. Anyone who has this certificate will not have to pay any charge for registration on purchase of a new vehicle. Along with this he will also be given some exemption in road tax.
Another benefit is that it will also save on maintenance costs, repairs and fuel consumption of older vehicles.
The third advantage is that older vehicles have a higher risk of road accidents due to older technology, which also provides relief.
Fourth, it will reduce the impact of pollution on our health.
Older vehicles will be removed from the scientific phase
The PM said the policy would play a crucial role in modernizing the number of vehicles in the country and removing old vehicles from the road at a scientific stage. Continuous decisions are being taken to make the industry in India productive and sustainable in order to accelerate a self-reliant India.
We are trying our best to rely on exports as much as possible for the chain associated with auto manufacturing. Be it ethanol, hydrogen fuel or then electric mobility, active participation in the industry is also much needed with these priorities of the government.
The first scrap plant will be set up in Gujarat
Earlier, Union Minister Nitin Gadkari announced the first scrap plant in Gujarat. He said that the country's first scrap plant will be started at Alang in Bhavnagar. The new policy of the Center will come into effect from October 1, 2021.
Pollution from older vehicles is only 10 to 12% higher. A park will be set up in Kutch to scrap old vehicles. 'Now a scrapage policy is going to be implemented across the country.
Vehicles from Asian countries will come to Gujarat for scaping
Older vehicles are more polluted and there is also a problem of road safety. Scrapage policy has been implemented in Japan and Belgium.
Asian countries will send scrap to Gujarat for scraping, which will come to Gujarat through Kandla. Scrap bins will be set up at four to five places in Gujarat to dispose of old vehicles. Those who discard a vehicle in scrap will be given a 25 per cent relief in road tax after purchasing a new vehicle on a certificate.
The percentage of this relief for commercial vehicles will be kept at 15. The certificate will also get a rebate of up to 25 per cent on motor vehicle tax. The new policy will boost employment in the country and boost the auto industry.
What is the benefit to the government from the new policy?
Scrapage policy will work like a lifeline for the economy in times of epidemics.
Older vehicles going into scrap will reduce pollution. Consumers buying vehicles with new engines will reduce fuel consumption and reduce pollution.
According to experts, GST of 50 to 100% is likely to be available on the purchase of a new vehicle instead of a vehicle that will go into scrap. However, the final decision on this will be taken by the GST Council. The new policy is expected to fetch the government Rs 9,600 crore from GST and Rs 4,900 crore in the next five years.
According to experts, after the old vehicle goes into scrap, the vehicle owner will buy a new vehicle, which will benefit the Center and the states by Rs 38,300 crore from GST.
According to a report, the removal of old vehicles and the arrival of new ones is estimated to save Rs 9,550 crore. It will save Rs 2,400 crore from next year alone. Steel accounts for 50 to 55 percent of a vehicle.
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The scrap from these vehicles will fetch about Rs 6,550 crore worth of steel scrap and not so much scrap will have to be procured from abroad, which will reduce steel imports, which is likely to make vehicles cheaper.
Steel scrap worth Rs 1,500 crore will be found in the next one year alone. At present there are no organized units to extract steel in the scrap market, at the same time it has been observed that engines are removed from vehicles in scrap and used to make bogus vehicles.
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