Scrappage Policy Likely To Get Approval Soon: Gadkari

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The vehicle scrappage policy for vehicles beyond 15 years of use is in talks from a long, long time. Now, it seems that it actually might see the light as the Union Minister for Road Transport and highway and Micro, Small and Medium-scale Enterprises, Shri Nitin Gadkari said that the proposal for the scrappage policy of vehicles has been successfully submitted and the approval is now awaited.

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This policy is aimed at scrapping the private and commercial vehicles in the country that are older than 15 years so as to incentivise the demand for newer vehicles which would be complying with the stricter BS6 emission norms.


“We have submitted the proposal and I am expecting to get an approval as soon as possible,” said Shri Nitin Gadkari.

On July 26, 2019 the Govt had proposed some amendments to the motor vehicle fundamentals in order to allow for scrapping vehicles beyond 15 years of use. Earlier, Minister of Finance, Smt Nirmala Sitharaman had said the scrappage policy was in works and was then being fine-tuned by various ministries.

It is reported that the vehicle scrappage policy might be introduced within the union budget by the finance minister which is to be presented on the 1st of February, 2021 in the parliament. Shri Gadkari who was addressing the Atmanirbhar Bharat Innovation challenge 2020-21 said that the scrapped vehicles will be recycled and the raw materials obtained will be used to create newer vehicles which in turn will make them cheaper due to the reduced cost of raw materials.

Scrapyard cars

“We will take scrap from all over the world and here we will make an industry where we can use all new material and the cost will be less… industry will be more competitive…we will get more export orders,” the union minister was quoted saying.

He further said that once the proposal is approved, India will become an Automobile hub and will result in more affordable cars and better economic output. A final call in this matter will rest in the hands of the Prime Minister’s office ( PMO ). The PMO had reportedly sent out the proposed policy for a consultation with stakeholders earlier.

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