Prime Minister Narendra Modi, on Friday, launched the national vehicle scrappage policy, stating that it will bring investment worth Rs 10,000 crore in India.
During a video address at the Investor Summit in Gujarat, PM Modi said the policy is a significant milestone in the country's development journey.
Adding that it will phase out unfit and polluting vehicles, he also invited youth and startups to join the programme.
"Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner," PM Modi said at the summit, which was aimed at getting investment relating to setting up vehicle scrapping infrastructure.
Vehicles will not just be scrapped by their age, but also if they are found to be unfit in automated testing, he said. "This policy will deeply benefit our middle class," he said.
A certificate will be issued on the scrappage of old cars. It will ensure that these people get discount on buying new cars and benefit on taxes, he added.
"We are promoting a circular economy. The aim is to develop a sustainable and environment-friendly economy," Modi said. Modernity in mobility not only reduces the burden of travel and transportation, but also proves helpful for economic development, he said.
Meanwhile, Union Minister for Road Transport and Highways Nitin Gadkari, who was also present at the event in person, said the scrappage policy will likely result in a cut in raw material costs by around 40%. He added that the policy will help India become an industrial hub of automobile manufacturing.
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