The decision was taken at SIAM CEO’s Delegation meeting chaired by Gadkari at Bharat Mandapam, where he addressed various critical issues faced by the automobile industry.
The minister had last year said the country needs 1,000 vehicle scrapping centres and 400 automated fitness test centres.
'India can be a scrapping hub'
Noting that the National Vehicle Scrappage Policy is a win-win for all stakeholders, the minister had said that India can be a scrapping hub in South Asia.
"Circular economy is very important and it is going to create jobs in the country," Gadkari said.
Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021 and said it would help phase out unfit and polluting vehicles and also promote a circular economy.
Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25% tax rebate on road tax for vehicles that are purchased after scrapping old vehicles. The vehicle scrappage policy has come into effect from April 1, 2022.
Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.
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