Need firm policy for scrapping old vehicles: JSW group chairman Sajjan Jindal

KOLKATA: JSW group chairman Sajjan Jindal has said the need of the hour is a firm policy for scrapping old vehicles which are fuel guzzlers and not environment-friendly.

He said incentivisation for scrapping old vehicles can be one of the solutions and suggested the government could waive off registration charges of a new car provided the buyer produces a certificate proving scrapping of his old car.

Jindal who helms the $14 billion JSW group with interests in steel, energy infrastructure, cement and paints took to the micro blogging site Twitter, to express his views.

“Surprised to hear that India has become the 2nd largest importer #Scrap in the world. This is a clear indication that our system is not geared up for consuming our internal scrap. Incentivisation for scrapping old vehicles can be one of the solutions. @PMOIndia #ScrapAndPropel,” Jindal said in a series of tweets from his handle.

“The govt could waive off registration amount for a new car if the buyer produces a certificate proving scrapping of old car,” he went on to add. He said it would be a “perfect opportunity for a buyer to get scrap value for his car + reduced GST + exemption on registration. Reason enough for purchasing a new car?” he remarked. Jindal said a firm policy on scrapping of old vehicles was the need of the hour. “We must encourage people to scrap old vehicles, be it private or commercial. It is a fact that the old vehicles are not very environment friendly and are fuel guzzlers. @NITIAayog #ScrapAndPropel,” he added.

This comes at a time when moves are afoot within key ministries to reduce dependency on import of scrap and encourage scientific processing and recycling of ferrous scrap.

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The Steel ministry has come out with a draft Steel Scrap Policy which envisages to set up environmentally sound management system for ferrous scrap which can encourage processing & recycling of ferrous scraps through organized and scientific metal scrapping centres across India to minimize dependency on import of scrap and make India self-sufficient in scrap availability.

Union road transport and highways ministry has also come out with an ambitious vehicle scrapping policy, which has proposed a mandatory cap of 20 years on the life of all commercial vehicles starting in 2020. However, it has been delayed and the PMO has directed it go through a consultative process with the various state governments. The policy, aimed at reducing pollution, has been welcomed by vehicle makers since it is tipped to generate higher sales for them. As per the proposal, until the 2020 deadline kicks, owners of such vehicles can voluntarily scrap their vehicles and receive a discount on the purchase of new ones.



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