Union Minister for Road Transport and Highways Nitin Gadkari said the National Automobile Scrappage Policy, unveiled on Friday, will benefit all stakeholders as it will boost manufacturing, generate employment and help both the central and state governments reduce GST by up to Rs 40,000 crore. Income will help. .
He said cheaper raw material from canceled vehicles would bring down the cost of vehicles and boost their sales, thereby increasing the GST collection.
Shri Gadkari said that both Kandla Port in Kutch and Alang Ship-breaking Yard in Bhavnagar can play an important role in realizing India’s dream of becoming a scrap recycling hub of entire South-East Asia.
He was speaking at the “Investor Summit” ahead of the launch of the National Automobile Scrappage Policy at Mahatma Mandir in Gandhinagar.
Prime Minister Narendra Modi, who virtually attended the program, launched the policy aimed at recycling old and unused vehicles.
“This policy of scrapping unsuitable vehicles is beneficial for all stakeholders. It will boost manufacturing, generate employment and increase our savings. The cost of new vehicles will also come down as scrap can be used for copper, aluminium, steel, plastic and more. rubber will be available in the industry,” Mr. Gadkari said in his address.
“If we recycle on an ongoing basis, we can recover 99 percent of the material. According to one estimate, this will reduce the cost of raw materials by 40 percent, thereby reducing prices and increasing sales.” The minister said.
He said that according to an estimate, the GST income of the states as well as the Center will increase by Rs 30,000 to Rs 40,000 crore if the sales of vehicles increase.
Shri Gadkari informed the invitees that his ministry has requested automobile companies to give a discount of 5 per cent to those who had deposited their old vehicles for scrap.
“There is no scrapping infrastructure in our neighboring countries. We can think of bringing old vehicles from those countries to Kandla port. I urge (Gujarat CM) Vijay Rupani to see if the state government Can develop an industrial cluster in Kandla. If this happens, scrap materials from all over the world will come here for recycling,” he said.
“PM has requested us to create an integrated scrapping hub at Alang, where ships are being recycled. Now, we will try to make it a scrapping hub. Our dream is to bring the old scrapping hub of South-East Asia to India Have to make vehicles from neighboring countries for recycling,” he said.
Since the primary criterion for scrapping a vehicle is fitness and not its age, Mr Gadkari said the government also wants investors to start fitness centers in each district under the public-private partnership model.
(Except for the title, this story has not been edited by NB staff and is published from a syndicated feed.)