The Rs 43,000 crore opportunity buried under vehicle scrappage policy
The much-delayed scrappage policy may get cleared in the next 15 days, Union Minister for Road Transport and Highways, Nitin Gadkari informed. The minister said it has been cleared from his end and is in the last lap of finalization awaiting clearance from the cabinet.
The automobile industry wants the policy to cover all segments, including cars and two-wheelers and not just commercial vehicles, to create a significant scale for new players to participate in this new market.
Three critical things the government needs to do to promote scrappage are: offer sizeable financial incentives, develop a resale market for the scrappage certificate for those who don’t want to replace their scrapped vehicles with new, and cut the life period for commercial vehicles to 10 years from the currently proposed 15, said Satyakam Arya, the managing director of Daimler India Commercial Vehicles.
An HDFC Bank study has estimated the market for vehicle scrappage and recycling at $6 billion. According to it, if the policy is defined well, 9 million vehicles could go off roads by fiscal 2021 and 28 million by 2025, largely comprising two-wheelers. It would reduce carbon dioxide emission by 17% and cut particulate matter in air by 24%. Also, if half the Bharat Stage-II and III vehicles go off the roads, it would save 8 million tonnes of oil a year.
Share this information with your friends and other social media to share your groups and subscribe to our channel and join our WhatsApp group, and follow on the Facebook page.
Post a Comment