Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 28 February 2018

GIVE THIS A THOUGHT


One  door  closes  ;   Another  opens

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Times of India ( 27 Feb ) carries following news :





The finance ministry has approved the much-awaited policy to scrap vehicles that are more than 15 years old and the document will now go to the GST Council, a source said today.


Gadkari at an event here today said the policy was needed to curb vehicular pollution as well as given the annual 22 per cent growth rate of automobile industry that will require an additional highway lane every third year, costing Rs 80,000 crore.


He said once the policy is approved the country is bound to become the hub for automobile industry and the prices were bound to be cheaper as scrap could be used for production of auto parts among other things.


The V-VMP policy proposes to take 28 million decade-old vehicles off the road.


Gadkari had earlier said that the PMO is keen on the proposal and once it is implemented, pollution would be checked considerably as 65 per cent of the pollution is caused by heavy vehicles that are more than 15 years old.


As per an earlier proposal, a relief of about Rs 5 lakh was to be provided to people who purchase new commercial vehicle of about Rs 15 lakh, if they surrender their over 15-year old commercial vehicles.


Gadkari has said that once the proposal is accepted it is bound to result in Rs 10,000 crore boost in tax revenue , as the automobile sector will benefit from it.


The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehicles bought on or before March 31, 2005, numbering about 28 million.



Read above in conjunction with following news :


  


Highlight :

Millions of heavily polluting vehicles could eventually disappear from roads across Germany after its top administrative court ruled that cities have the right to ban diesel motors in an effort to improve deadly air quality levels.

Tuesday’s historic decision potentially affects an estimated 12m vehicles and has delivered a heavy blow to Europe’s largest car market, while being celebrated by environmental campaigners.

The court said it would be up to city and municipal authorities to apply the bans, but advised them to “exercise proportionality” in enforcing them, and to impose them gradually, granting exemptions for certain vehicles, such as ambulances, rubbish collection lorries and police cars.





But what is that “ another door “  ?



My rough estimate is that , all over the world , there are approx. 450 Million vehicles which are more than 15 years old ( out of a total population of approx. 2,000 Million )



In absence of any official “ Old Vehicle Scrapping Policy “ by most countries , of these , some 30 – 35 million vehicles get scrapped each year



But , expect most countries to follow the examples set by India / Germany , and enact such similar laws very soon



If that happens , within next 4 / 5 years , it will be a “ Old Vehicle Scrapping Business “ of 400 / 500 million vehicles per year , from which India can vastly benefit



In my following blog , I have explained how :

Car Grave-Yard of World ?  [  14  Feb  2018  ]





Remember, steel scrap from just 50 million cars would amount to 45 million tons


And  when used as feed-stock for our steel plants , that would bring down the selling price of steel sheets ( used for making new vehicles ), from current Rs 50,000 per ton to Rs 30, 000 per ton  !


In turn , that would bring down the ex-factory selling price of cars by Rs 15,000 / -  , eliminating any need for providing long-term incentives / benefits to our auto industry or customers


I do hope NDA govt gives serious consideration to my suggestion



28  Feb  2018













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