One door closes
; Another opens
----------------------------------------
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
www.hemenparekh.in
/ blogs
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