Gujarat: The Voluntary Vehicle Fleet Modernization Programme, or policy for scrapping automobiles, was unveiled by Prime Minister Modi on August 13. In a virtual address at the Investor Summit in Gujarat, the Prime Minister said that the scrappage policy will generate investments of around Rs 10,000 crore. In addition, he said that Alang in Gujarat can become a vehicle scrapping hub.
PM Modi said the current method of scrapping materials is ineffective. Nitin Gadkari, Union Minister for Road Transport & Highways, attended the event in person. Gadkari predicted a 40 percent reduction in raw material costs with the scrappage policy. Moreover, he stated that the policy would make India a hub of automobile manufacturing.
Furthermore, he said that public-private partnership (PPP)-style testing centers would be assembled across the country. It aims to encourage owners of old and polluting vehicles to get them off the road. Commercial vehicles which are over 15 years old and personal cars over 20 years old will be eligible for scrapping.