“We have submitted the proposal and I am expecting that we will get approval as early as possible for the scrapping policy,” Gadkari said. Vehicle scrappage is simply getting rid of old cars which are the polluting vehicles from the road. Vehicle scrappage policy is mandated by a government to accelerate the replacement of old, polluting vehicles by new vehicles.
If this policy gets a green signal, over 28 million end-of-life vehicles or ELVs (older than March 31, 2005) across categories were ready to be discarded by April 2020, as per the government estimates.
Obviously, it would translate to a massive opportunity for players in the organized scrappage and recycling industry.
So far, it is important to prioritize the scrappage of old heavy-duty vehicles and replace them with BS-VI vehicles.
If a stimulus package is provided to the personal vehicles like two-wheelers and cars, then the public incentive program along with voluntary incentives from the industry should be linked with electric vehicles.
