Introduce vehicle scrappage policy to boost automobile sector: CICU urges Centre
The industrialists stated that the policy will not only help owners to get an incentive for old polluting vehicles with low value but will also boost the automobile sector which is facing a crisis due to the ongoing coronavirus pandemicUpdated: Jul 09, 2020 19:41 IST
The automobile industry which is reeling under massive sales downturn has urged the Centre to introduce vehicle scrappage policy in order to boost the sector.
In a letter sent to the Prime Minister’s office, the industrialists stated that the policy will not only help owners to get an incentive for old polluting vehicles with low value but will also boost the automobile sector which is facing a crisis due to the ongoing coronavirus pandemic.
President of Chamber of Industrial and Commercial Undertaking (CICU) Upkar Singh Ahuja and general secretary Pankaj Ahuja said, “The announcement of the policy is hanging fire for a long time and if introduced, it would bring some relief to the automobile sector which is reeling under slowdown.”
CICU organising secretary, JS Bhogal said, “The vehicle scrappage policy would reduce old polluting vehicles on roads. With the resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrap yards with some sort of monetary compensation to owners which could ensure two benefits - an incentive for owners to get rid of such vehicles and putting these polluting vehicles out to save the environment.”
Further reusing/recycling of scrap material like steel and aluminium can be used for manufacturing new vehicles. The scrap can also be made available to the steel industry, he said.