Nitin Gadkari, Union Minister for MSMEs and Road Transport & Highways, has welcomed the Voluntary Scrappage Policy announced by the Finance Minister Nirmala Sitharaman during her presentation of the Union Budget 2021. The Transport Minister said that declaration of the details of the policy will be done within 15 days from February 1.
Following the budget release, in an interaction with media, Gadkari said that the scrappage policy will lead to new investments of around Rs 10,000 crore and will generate as many as 50,000 job opportunities.
As per the Minister, the scrappage policy would cover an estimated 51 lakh light motor vehicles (LMV) that are above 20 years of age, while another 34 lakh LMVs that are above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and those currently without valid fitness certificates.
Such vehicles are estimated to contribute 10-12 times more to pollution than the new or recent vehicles. Outlining the benefits of the policy, he said it would lead to recycling of waste metal, improved safety, reduction in vehicular emissions, reduction in oil imports due to greater fuel efficiency of current vehicles, and stimulate investment.
The minister was also appreciative of the increased budget allocation for the highways sector amounting to Rs 1,18,000 crore, with the highest-ever capital investment of Rs 1,08,000 crore. On this, Gadkari said, the Ministry’s increased stress on the monetization of highways will help in expanding the road network in the country.
(With inputs from PIB)