Technology

National‌ ‌Scrappage‌ ‌Policy‌ ‌to‌ ‌Speed‌ ‌Up‌ ‌Economic‌ ‌Growth‌ ‌

Union Road Transport and Highways Minister Mr Nitin Gadkari said that the national automobile scrappage policy would accelerate economic growth and boost employment. He further said that introduction of the vehicle scrappage policy is beneficial for both the Centre and states. This policy will be earning around Rs.40,000 crore in the form of Goods and Services Tax (GST).

The minister said that the launch of the national automobile scrappage policy was a historic decision. Also, he pointed out that the automobile sector provides direct and indirect employment to 75 lakh persons. 

The minister stated that electric vehicles would become cheaper than petrol and diesel vehicles soon. The minister also stated that he is going to launch electric tractors next month. Also, he said that the policy outlines key steps for facilitating the setting up of necessary Automated Testing Stations (ATS) and Registered Vehicle Scrapping Facilities (RVSF).

The minister said that ATS would be set up to minimise manual testing of vehicles as per the road map. Currently, seven ATS are already functioning out of sanctioned 26 ATS are sanctioned. He added that 75 stations would be set up during the first phase, and in the next phase, the government will scale the number of stations to 450-500.

The national automobile scrappage policy will help phase out unfit and polluting vehicles and promote a circular economy. It is estimated that the scrappage policy would bring investments worth more than Rs.10,000 crore and create around 50,000 jobs.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

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