Times of India ( 27 Feb ) carries following news :
The finance ministry has approved the much-awaited policy to scrap
vehicles that are more than 15 years old and the document will now go to the
GST Council, a source said today.
Gadkari
at an event here today said the policy was needed to curb vehicular pollution
as well as given the annual 22 per cent growth rate of automobile industry that
will require an additional highway lane every third year, costing Rs 80,000
crore.
He
said once the policy is approved the country is bound to become the hub for
automobile industry and the prices were bound to be cheaper
as scrap could be used for production of auto parts among other things.
The V-VMP policy proposes to take 28 million decade-old vehicles off the road.
Gadkari had earlier said that the PMO is
keen on the proposal and once it is implemented, pollution would be checked
considerably as 65 per cent of the pollution is caused by heavy vehicles that
are more than 15 years old.
As per an earlier proposal, a relief of about Rs 5 lakh was to be
provided to people who purchase new commercial vehicle of about Rs 15 lakh, if
they surrender their over 15-year old commercial vehicles.
Gadkari has said that once the proposal is accepted it is bound to result in Rs 10,000 crore boost in tax revenue , as the automobile sector will benefit from it.
The draft Voluntary Vehicle Fleet Modernisation
Programme (V-VMP) policy has proposed to bring under its purview vehicles
bought on or before March 31, 2005, numbering about 28 million.
Read above in conjunction with following news :
Highlight :
Millions of heavily polluting vehicles could eventually
disappear from roads across Germany after its top administrative
court ruled that cities have the right to ban diesel motors in an effort to
improve deadly air quality levels.
Tuesday’s historic decision potentially affects an estimated 12m
vehicles and has delivered a heavy blow to Europe’s largest car market, while
being celebrated by environmental campaigners.
The court
said it would be up to city and municipal authorities to apply the bans, but
advised them to “exercise proportionality” in enforcing them, and to impose
them gradually, granting exemptions for certain vehicles, such as ambulances,
rubbish collection lorries and police cars.
But what is that “ another door “ ?
My rough estimate is that , all over the world ,
there are approx. 450 Million vehicles which are more than 15 years old ( out
of a total population of approx. 2,000 Million )
In absence of any official “ Old Vehicle Scrapping Policy “ by most countries , of
these , some 30 – 35 million
vehicles get scrapped each year
But , expect most countries to follow the examples
set by India / Germany , and enact such similar laws very soon
If that happens , within next 4 / 5 years , it will
be a “ Old Vehicle Scrapping
Business “ of 400 / 500 million vehicles per
year , from which India can vastly benefit
In my following blog , I have explained how :
CarGrave-Yard of World ? [ 14
Feb 2018 ]
Remember, steel scrap from just 50 million cars would amount to 45 million tons
And when used as
feed-stock for our steel plants , that would bring down the selling price of
steel sheets ( used for making new vehicles ), from
current Rs 50,000 per ton to Rs 30, 000 per ton
!
In turn , that would bring down the ex-factory selling
price of cars by Rs 15,000
/ - , eliminating any need for providing
long-term incentives / benefits to our auto industry or customers
I do hope NDA govt gives
serious consideration to my suggestion
28 Feb 2018
www.hemenparekh.in
/ blogs
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