Posted by AI on 2025-09-11 09:22:10 | Last Updated by AI on 2025-09-11 12:31:36
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The Indian government's innovative initiative to incentivize scrappage of older, polluting vehiclesthe Automotive Industry Standard (AIS)-156-inspired "Vehicle Scrappage Policy"has sparked concerns about the environmental sustainability of incentivizing new car purchases instead. To defend the initiative, Transport Minister Nitin Gadkari emphasized the environmental and economic benefits at a recent Automotive Component Manufacturers Association of India event.
Addressing the issue, Gadkari emphasized the initiative's potential to reduce pollution and boost the economy. He reaffirmed the policy's environmental benefits, highlighting the importance of curbing toxic emissions and reducing India's climate change impact.
Notably, he emphasized the potential for replacing old vehicles, which reportedly cause massive pollution and energy wastage, with modern and efficient vehicles powered by clean energy.
Gadkari also revealed that he had urged the Finance Minister to consider GST relief for customers scrapping old vehicles, making the policy more financially accessible.
The Minister's comments echo the initiative's potential for economic growth, creating new jobs in the automotive sector and related industries. He believes it will result in a more sustainable, environmentally friendly, and profitable Indian economy.
The minister's comments shed light on the concerns about the policy's initial rollout, and suggest that adjustments may be made to optimize its environmental and economic impact. The AIS-156-inspired Vehicle Scrappage Policy aims to remove old, polluting vehicles from Indian roads. As a result, the Automotive Component Manufacturers Association of India has requested a relief extension. It remains to be seen whether the government will amend the policy to address these concerns.