The official said that three separate policies are being discussed.
3 policies include setting up Automated Vehicle Scrappage Facility
The official said, "There are three separate policies being discussed; one is for setting up of scrappage centers by the ministry of steel, the other is our ministry's vehicle scrappage policy and the third is for setting up an Automated Vehicle Scrappage Facility (AVSF)."
What is the vehicle scrappage policy?
The vehicle scrappage policy allows the scrapping of vehicles after they have completed their 15-year term, thus limiting a vehicle's life.
This allows for old, pollution-causing and fuel-guzzling vehicles to be scrapped for parts and also helps reduce road congestion and drive demand for new vehicles.
This will also reduce India's dependence on imported metals, as it allows metals to be recycled.
Finance Minister Nirmala Sitharaman proposed policy last August
It was introduced as an attempt to boost sales in the auto sector, which has been hit by low consumer demand, amid a slowing economy.
In October 2019, draft guidelines on the policy were released which listed norms for companies to establish and operate scrapping facilities.
Cabinet note on policy expected in 15-30 days: Gadkari
On Tuesday, Sitharaman had confirmed that several rounds of inter-ministerial consultation on the scrappage policy had been completed and the policy was close to finalization.
Speaking at the Federation of Automobile Dealers' Associations on Friday, Gadkari also said that the policy has received clearance from all quarters and a Cabinet note is expected in a period of 15-30 days.