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  1. Vehicle scrapping policy will increase demand in industry: Pawan Goenka, M&M

Vehicle scrapping policy will increase demand in industry: Pawan Goenka, M&M

Pawan Goenka, the Executive Director of Mahindra & Mahindra is of the view that government is moving in the right direction with the new vehicle scrapping policy.

By: | Published: August 29, 2016 12:38 PM
Vehicle scrapping policy, Vehicle scrapping policy news, draft scrapping policy Pawan Goenka said: It is encouraging to see work being done on the new scrapping policy.

Pawan Goenka, the Executive Director of Mahindra & Mahindra and Group President Auto & Farm Sector is of the view that government is moving in the right direction with the new vehicle scrapping policy.  “It is encouraging to see work being done on the new scrapping policy.” Goenka is of the view that “taking out older vehicles will increase the demand in the industry”. “All growth indicators are positive for the sector,” Goenka told ET Now in an interview.

Road, Highways and Transport minister Nitin Gadkari has indicated that the draft policy for scrapping heavy vehicles which are over 15 years old will be ready in the next fortnight. “We intend to scrap 15-year-old about 12-15 lakh heavy vehicles, mostly trucks and buses, in the first phase of our proposed Voluntary Vehicle Fleet Modernisation Programme (V-VMP). The draft policy would be ready in a fortnight,” PTI quoted Nitin Gadkari. The minister has said that nearly 65% of vehicular pollution is due to heavy vehicles. The government plans to do the scrapping old heavy vehicles in industrial clusters such as Kandla.

The policy is likely to provide owners an incentive of between Rs 2-3 lakh for every scrapped heavy vehicle. Once finalised, the policy may result in domestic steel scrap generation worth Rs 5,500 crore to substitute imported scrap. Gadkari is also of the view that a big positive of the new scrapping policy would be its employment generation potential. There will be a significant demand for the workforce, for the task of scrapping and recycling. Additionally, with the demand that will be created for new vehicles, the automobile sector may also employ more people.

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