India's New Vehicle Scrappage Policy: A Step Towards Sustainable Auto Industry

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Introduction to the Vehicle Scrappage Policy


Vehicle Scrappage Policy: The Indian government is making significant strides in promoting environmental sustainability, particularly within the automotive sector. A few years back, a policy was introduced to phase out older vehicles, and now a new amendment is set to enhance this initiative. Starting in April, vehicle manufacturers will be mandated to incorporate a minimum of 8% recycled steel in their new vehicles, with the potential to increase this requirement to 18% in the future.


Mandatory Use of Recycled Steel Companies Required to Utilize Recycled Steel

Under the revised policy, steel sourced from decommissioned vehicles will be utilized in the production of new automobiles. This initiative aims to mitigate pollution associated with steel extraction and lower the expenses related to acquiring new steel. Manufacturers can opt to procure steel from vehicles that have reached the end of their operational life or have been scrapped. They can either purchase steel from certified scrapping agents or establish their own recycling and scrapping facilities.


Scrapping and Recycling Procedures Processes for Scrapping and Recycling

Manufacturers may implement buy-back schemes to facilitate the scrapping of old vehicles. Additionally, these operations must be registered on the Central Pollution Control Board's (CPCB) central portal. The CPCB will provide an Extended Producer Responsibility (EPR) certificate based on the weight of the recycled steel, which companies can utilize to fulfill their recycling obligations.


Government's Initiative to Expand Scrapping Facilities Increasing Scrapping Facilities Across India

Currently, India has only 82 registered vehicle scrapping centers, but the government plans to boost this number to 100 within the next three months. New policies may be introduced to establish additional scrapping facilities in various states.


Advantages for Vehicle Owners Customer Benefits from the New Policy

If your vehicle is aging or has reached the end of its useful life, you can have it scrapped at an authorized facility. This process will provide you with a certificate that can be redeemed for a discount on the purchase of a new vehicle. Consequently, this policy not only aims to safeguard the environment but also offers tangible benefits to vehicle owners.


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