NEW DELHI: To transform India into a automobile hub, the government will build eight scrap recycle centres near ports like Kandla to recycle used vehicles from world over and boost automobile exports which is Rs 2.5 lakh crore at present, Union Minister Nitin Gadkari today said.
"A Cabinet note will be floated soon in this regard. State Trading Corporation and Mckinsey has submitted a report in this regard," Road Transport and Highways Minister Gadkari said addressing the media here.
Gadkari said the move follows National Green Tribunal (NGT) order banning plying of diesel vehicles which are over 10 years old in Delhi-NCR and the new policy will offer financial incentives up to Rs 1.5 lakh on surrender of such vehicles.
"We have sought exemption of taxes up to Rs 50,000 on each vehicle which is at present Rs 1.5 lakh. Besides, on surrender of old vehicle at any of the the eight industrial units, a certificate for Rs 50,000 will be given producing which a buyer can get rebate of that amount. In addition some rebate will be there," Gadkari said.
He added that used vehicles can be brought from all over the world to these centres and scrap could be recycled the finished product would be much cheaper.
"This can be exported and this could give the industry a fillip... if we bring old vehicles from the world and recycles parts and export them ...India will be automobile hub. There is Rs 2.5 lakh crore export in automobile sector," he said.
He said there is an urgent need to recycle as more than 10 years old vehicles were running on roads with old technology which lacks not only safety norms but creates pollution.
"Recycling would not only create employment but boost the economic growth," he said.
Source : economictimes.indiatimes.com