MONEY FOR NOTHING

THE GOVERNMENT IS PUSHING AUTOMAKERS TO OFFER DISCOUNTS ON NEW VEHICLES IN EXCHANGE FOR SCRAPPING OLD ONES IN LINE WITH ITS SCRAPPING POLICY. INFRASTRUCTURE WILL HAVE TO SCALE TO MAKE THE DREAM OF A CIRCULAR ECONOMY A REALITY

- ASTHA ORIEL & CHETAN BHUTANI

Can scrapping old cars boost the sales of new ones? The answer, if the government’s policy comes good, could be a resounding yes.

India’s automobile industry is giving a renewed push to make the government’s grand ambition of phasing out old, fuel-inefficient, high-emission cars a reality. Introduced in 2021 by Prime Minister Narendra Modi, the Voluntary Vehicle Fleet Modernisation Program (VVMP), or the Vehicle Scrapping Policy in popular parlance, sought to phase out diesel vehicles that are more than 10 years old and petrol vehicles that are 15 years old to reduce air pollution.

The government felt compelled to introduce the policy because even as it has incrementally tightened fuel emission norms—from the Bharat Stage Emission Standards (BSES) introduced in 2000 all the way to BS-VI in 2020 and the stricter BS-VII that is expected next year—cars that adhered to older emission standards and that may not be live up to newer norms continue to ply on India’s roads.

Nitin Gadkari, Union Minister of Road Transport and Highways, has said the transport sector accounts for 40% of India’s total emissions. If unchecked, this could hinder India’s ambitious goal of ensuring netzero emissions by 2070.