“I have signed the file for Cabinet note of Scrappage Policy today. The note has already been approved by Finance Ministry. Now it will be circulated to concerned ministries,” Gadkari told reporters on the sidelines of an event here on Thursday.
The policy for discarding old vehicles will be applicable to all automobiles, including two and three wheelers, Gadkari said.
Finance Minister Nirmala Sitharaman last month said that the scrapping policy will be announced shortly to check the slump in automobile sales.
Talking about promoting alternative sources of fuel, Gadkari said that he acknowledges the concerns of the Internal Combustion Engine- vehicles industry and will certainly look to help auto manufacturers.
“Our import bill for crude is Rs. 7 lakh crores. So we are promoting ethanol, methanol, bio-CNG and electric. But we are not against petrol and diesel manufacturers. I understand they have some problems, and I want to help them,” Gadkari said.
The government could offer tax incentives for discarding vehicles older than 15 years under the proposed scrappage policy, apart from other measures to disincentivise plying of vehicles older than 15 years.