Pawan Goenka, believes that the government is moving in the right direction with the new vehicle scrapping policy.
He added that "taking out older vehicles will increase the demand in the industry."
Nitin Gadkari has announced that a draft policy for scrapping heavy vehicles will be ready in the upcoming days.
"We intend to scrap 15-year-old about 12-15 lakh heavy vehicles in the first phase of our proposed Voluntary Vehicle Fleet Modernisation Programme." Nitin Gadkari added.
The minister had earlier said that 65% of vehicular pollution is due to heavy vehicles. The government is now planning to scrape the heavy vehicles in industrial clusters.
The policy is will provide the owners with an incentive between Rs. 2-3 lakh for every heavy vehicle scrapped.
Once it is finalised, the policy might turn the domestic steel scrap industry to a Rs. 5,500 crore worth operation. This is expected to substitute imported scrap.