Govt seeks auto sector data amid slow scrappage rollout

Scrapping is still voluntary in most states, barring Delhi-NCR, with low returns, no assured benefits for car owners

- Manas Pimpalkhare

The Union ministry of road transport and highways has sought data from Society of Indian Automobile Manufacturers (Siam) to understand why the vehicle-scrapping facilities are not getting adequate footfalls, said two people in the know.

Vehicle-scrapping is dangled as an option for end-of-life vehicles that are said to be polluting. In India's largest car market, Delhi, a petrol vehicle older than 15 years and a diesel vehicle more than 10 years old are required to be scrapped, as per a Supreme Court order.

"The ministry is seeking the industry's view on why scrapping has not taken off. There have been operational challenges with scrapping centres. They are not getting adequate demand, and these issues need to be addressed," one person said, requesting anonymity.

According to the road ministry's vehicle-scrapping portal, most of the 170 scrapping facilities in the country are listed as "approved and operational," though some are only "approved" but yet to begin operations.