Scrapping Policy In India To Help Boost Auto Industry

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Emission norms in the country are not stringent and follow varying standards across India. Now the Indian Government plans on skipping the BS-V norm and opting for BS-VI emission standards by April 1, 2020. They also plan on improving the scrapping policy in the country.

Currently, the automobile industry witnesses a turnover of approximately Rs. 4.5 lakh crore. Within the coming five years, turnover worth Rs. 20 lakh crore can be witnessed with an all-new auto scrapping policy. The Indian Government is confident that India will soon be the number one automobile exporter.

The scrapping policy is most likely to include a 50 percent rebate in excise duty on new vehicles. Only owners who scrap their older and polluting vehicles will receive these benefits.

Road Transport and Highways Minister will be publishing their 'Scraping Policy' in the public domain within a week. General public can send in their suggestion, which will help improve the Scraping Policy. The Finance Ministry needs to approve the policy and will finally be sent to the Cabinet for implementation.

Copper, steel, aluminium, and plastic can be salvaged from older vehicles. Labour cost in India is low and this will aid in the manufacture of new parts at a lower price. Auto Scrapping policy will also help in the recycling of older vehicles for newer and modern models.

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Read more on: #auto news
Story first published: Monday, May 23, 2016, 10:48 [IST]
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