Building The Scrappage Ecosystem

THE INDUSTRY IS LAYING THE FOUNDATION FOR A ROBUST SCRAPPAGE ECOSYSTEM IN LINE WITH THE VOLUNTARY VEHICLE FLEET MODERNISATION PROGRAM. SUMESH SOMAN VISITS THE MARUTI SUZUKI TOYOTSU ELV AND SCRAPPAGE UNIT TO ASSESS THE ON-GROUND CAPABILITIES.

- SUMESH SOMAN

The ‘Voluntary Vehicle Fleet Modernisation’ program notified by the Government of India (GoI) is expected to generate an investment of over Rs.10,000 crore. Expected to aid in building a robust ecosystem, the scheme is targeted at incentivising owners of the old and polluting End-of-Life-Vehicles (ELVs) due for disposal to be replaced with new and cleaner vehicles to curb the Particulate Matter (PM) emissions. For passenger vehicles, it will come into effect by June 2024 and for commercial vehicles by April 2023. Union Minister of Road Transport and Highways (MoRTH), Nitin Gadkari presiding the Maruti Suzuki Toyotsu India Pvt. Ltd. (MSTI) ELV scrapping recycling unit launch at Noida, late last year, had said, “MoRTH has launched the visionary national automobile scrappage policy aimed at creating an ecosystem for phasing out unfit and polluting vehicles from the Indian roads. To meet this objective, we need state-of-the-art scrapping and recycling units.” To boost the scrappage and recycling ecosystem, Maruti Suzuki, Tsusho Group and Toyota India partnered for one such vehicle scrapping and recycling unit at Noida, in Uttar Pradesh back then.