The decision was made in Siam Meeting of the CEO delegation led by Gadkari at Bharat Mandapam, where he addressed various critical issues facing the automobile industry.
The minister had said last year that the country needs 1,000 vehicle scrapping centres and 400 automated fitness testing centres.
‘India can be a scrapping centre’
Noting that the National Vehicle Scrapping Policy is beneficial to all stakeholders, the minister said India can be a hub for scrapping in South Asia.
“The circular economy is very important and will create jobs in the country,” Gadkari said.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021 and said it would help phase out unfit and polluting vehicles and also promote a circular economy.
Under the new policy, the Centre had said states and Union Territories (UTs) would provide up to 25 per cent road tax refund for vehicles purchased after scrapping old vehicles. The vehicle scrappage policy came into effect from April 1, 2022.
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after 15 years.
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