CICU suggests government to introduce vehicle scrappage policy
Says it will boost India’s auto manufacturing
Ludhiana: Upkar Singh Ahuja, President, and Pankaj Sharma, General Secretary, Chamber of Industrial and Commercial Undertakings (CICU) in a press release, jointly said that the long-delayed and much-awaited vehicle scrappage policy should be introduced by the government to boost India’s auto manufacturing. Due to lockdown, especially automobile industry is currently reeling under a big recession.
J.S Bhogal, Organizing Secretary, CICU added that the vehicle scrappage policy will help the economy by reducing old polluting vehicles on Indian roads and looks at confining them to the scrapyard. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrapyards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.
These measures could be equally important benefits in such sector then going to the market for new vehicles, which could boost demand, and re-using/recycle the scrap materials like steel and aluminium for manufacturing new vehicles. It will help the steel industry with better availability of scrape similar is with aluminium and plastics recycling industry
CICU requested Prime Minister and Minister of MSME to introduce vehicle scrappage policy to boost India's auto manufacturing and allied industries.