A Memorandum of Understanding (MoU) for setting up a dedicated vehicle scrapping facility in Bhavnagar is expected to be signed at a formal event on August 13, where Prime Minister Narendra Modi will remain virtually present.
The event, scheduled to be held at Mahatma Mandir in Gandhinagar, will see Union Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, in attendance along with other officials from MoRTH, New Delhi. The event will see Government of India’s vehicle scrapping policy being presented before 200-300 automobile dealers and investors who have been invited from across the country.
The first vehicle scrapping facility in Gujarat is expected to be set up in Bhavnagar near Alang where ship-breaking and recycling activities are carried out and the necessary ecosystem including induction furnaces and steel-re-rolling mills are already present, an official from the ports and transport department of the state government said.
An investors’ handbook will also be unveiled during the event in Gujarat. The event assumes importance as India plans a mandatory fitness testing of vehicles, for those that are 15-20 years old. Vehicles that fail the test get marked for scrapping. The new policy for scrapping of old and unfit automobiles is expected to kick in from April 2022.
The central government is formulating a scrap policy to remove about two crore old vehicles which are increasing pollution in the country, a separate park for these scrap vehicles is being set up in Alang in Gujarat. The construction of a scrap park at this place will also provide employment to the locals. Scrapped vehicles from all over the country will come to Gujarat, so new industries and businesses in the state will get a big opportunity. The facilities required for scrap park are available in this coastal area.
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