The details of the voluntary vehicle scrapping policy will be declared within 15 days, Union Minister for Road Transport and Highways and MSME Nitin Gadkari told CNBC-TV18 today.
"Today I have laid out the advantages of the scrapping policy. Within 15 days, I will give all the framework of the scrapping policy," Gadkari said.
Finance Minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy which entails a fitness test for commercial vehicles older than 15 years and personal vehicles older than 20 years. The Budget also allocated Rs 1.18 lakh crore for the Ministry of Road, Transport and Highways for FY22.
"This is a revolutionary Budget. This Budget is going to accelerate the growth in the country and the most important feature of this Budget is a maximum priority for infrastructure development. And for the road sector, the Budget has increased from Rs 91,000 crore to Rs 1.18 lakh crore. I am confident that the dream of our PM to make India a $5 trillion economy and make infra of Rs 111 lakh crore we will complete that 100%," Gadkari said.
The scrappage policy will lead to a new investment of around Rs 10,000 crore, and create as many as 50,000 jobs, Gadkari added.
Gadkari mentioned that the scrappage policy is going to be useful for the country as it will lead to reduced air pollution, increased road safety, recycling of waste metal, reduction in oil imports due to better fuel efficiency of current vehicles, and stimulate investment.
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It is also expected to help in rising automobile industry turnover by at least 30% and thereby, will produce more jobs, Gadkari said.
The minister said that the scrappage policy would cover an estimated 51 lakh light motor vehicles that are above 20 years of age, while another 34 lakh light motor vehicles above 15 years. It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates. These vehicles are estimated to cause 10-12 times more pollution than the latest vehicles.
"My dream is to make India the number one automobile manufacturing hub and 100% we will achieve this in five years," he said.
Sitharaman said that the government plans to increase the pace of asset monetization and as part of it, NHAI has sponsored an InVIT to attract investors and five operational roads with Rs 5,000 crore value are being transferred to the NHAI InVIT.
NHAI operational toll roads are also to be monetised, Sitharaman added.
"I don't have any problem of money. I can talk about anything, I can do anything. Lots of assets are ready. If you are going to monetise an asset the either TOT or different models are there... Money we can raise. Now, 100% FDI in infrastructure is allowed, the income tax exemptions are there. We are keenly interested to get an investment in insurance funds, pension funds from abroad and that is available at a low cost. 100% we will get FDI in infra and MSMEs," Gadkari told CNBC-TV18.