Intent of scrappage policy excellent; wrinkles need to be ironed out, says SKF MD

Intent of the scrappage policy is excellent but there are a number of wrinkles that need to be ironed out, said Manish Bhatnagar, managing director (MD) of SKF, on Friday.

Speaking in an interview to CNBC-TV18, he said, “Scrappage policy announcement is a good intent. There are a number of wrinkles in that policy that need to be discussed with the industry. It is not as easy as the government is making out to be right now. We need to put a mechanism in place for scrappage. It takes time. There are certainly issues with the policy that the industry is uncomfortable with and should talk to the government about that."

He said there is a pick-up in the passenger vehicles segment. “October-December quarter was a bit of a catchup for autos. We have seen tapering off of demand on the two-wheelers and a pick-up of demand on passenger vehicles. I do think the scrappage policy announced will help capex, but that is still a couple of years to go. So, in general, two-wheelers slowing down, other segments picking up,” he said.