Gadkari plans to set up 2-3 vehicle scrapping units in every dist

He was speaking at the inauguration of a new Registered Vehicle Scrapping Facility (RVSF) in Haryana on Tuesday.

The new scrapping unit Abhishek K Kaiho Recyclers Pvt. Ltd. - has been launched by Abhishek Group in partnership with Japan-based Kaiho Sangyo, NDTV reported.

The facility can recycle up to 1,800 vehicles a month and utilises the latest technologies to salvage and re-use components from scrapped vehicles.

Gadkari said scrapping centres have huge potential for the Indian market and added that raw materials such as old tyres and plastics will be used in the construction of the country's road network, the report said.

He also said that he has approached the Environment ministry to allow for the import of old tyres for the same purpose.

In August 2021, Prime Minister Narendra Modi launched the Voluntary Vehicle Fleet Modernisation Programme, better known as the automotive scrappage policy.

The policy was envisaged to bring in investments of around Rs 10,000 crore.

Currently, India imports Rs 22,000 crore worth of scrap steel, and scrapping old vehicles will help reduce this dependency and will enable to bring down raw material costs by around 40 percent.

"Vehicle scrapping will help phase out unfit & polluting vehicles in an environment-friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible," the Prime Minister had said.

According to the policy, all vehicles at the end of their registration period are required to undergo fitness testing to be fit for re-rgistration.  Post-re-registration the vehicle has to be fitness tested every five years.

At present, commercial vehicles have to undergo compulsory testing after 10 years while passenger cars have a shelf life of 15 years. 

The government also offers incentives to vehicle owners opting for the policy voluntarily with 4-6 percent of the car's ex-showroom price and a registration fee waiver on a new car.

The country's first government-approved scrapping and recycling unit was set up by Maruti Suzuki and Toyota Tsusho Group jointly in November 2021.

Mahindra & Mahindra and Tata Motors had announced inking a Memorandum of Understandings (MoU) with Maharashtra Government to establish multiple vehicle scrapping centres in the state.