Prepared with a new scrapping policy that will offer incentives for surrendering old polluting vehicles, Union Minister Nitin Gadkari has said it would encourage automobile industry turnover about four-times to Rs 20 lakh crore in the next five years.
Draft of the policy is ready and would be put in public domain within a week to seek suggestionsof the stakeholders and general public, the road transport and highways minister said.
“We will put the vehicle scrapping policy on website within a week to seek suggestions and based on that we will seek Finance Ministry's approval. Once approved, it will be sent for the Cabinet nod,” Gadkari told news agency PTI in an interview.
Automobile industry's turnover will touch Rs 20 lakh crore in the next five years with this policy and India can be the “number one country to export the world's best cars”, he said.
Pointing out to to emission control measures, draft norms for the 'end of life' policy are likely to provide about 50 per cent rebate in excise duty on new vehicles for buyers who surrender their polluting old ones.
“We will set up industrial clusters near ports that will manufacture automobile parts at half the market rate. The labour cost in India is less. Car parts like copper, steel, plastic and aluminium would be available in plenty from old vehicles, which would be recycled at these clusters,” he said.
Last month, government said it is planning 29 port-based coastal industrial centres under coastal economic zones which will boost exports by $110 billion besides creating one crore new jobs.
Proposed policy will follow Centre’s previous announcement to implement firm emission norms for vehicles from April 2020 even after auto industry calling it an “extremely challenging” job.