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Scrappage scheme to add Rs 20 trillion to auto industry turnover in the next five years

  Scrappage scheme to add Rs 20 trillion to auto industry turnover  in the next five years
Desirazu Venkat Desirazu Venkat Monday 23 May 2016, 16:05 PM

Union Minister Nitin Gadkari has announced that the scrappage scheme will give a boost to the auto  industry’s turnover to Rs 20 lakh crore from the current Rs 4.5 lakh crore. The scheme will provide incentives for people to scrap their older cars in favour of newer ones in a bid to curb pollution.

As a first step in the scheme, the Centre will release a draft of the scrappage policy to seek public opinion later this week. This is expected to be followed later this year by an approval from the finance ministry and then the Cabinet.

Under the scheme, those scrapping smaller vehicles would get a benefit of up to Rs 30,000 while larger vehicles like trucks could earn incentives of up to Rs 1.5 lakh. The policy is expected to hold for vehicles over 10 years of age.

The minister has announced that the government plans to setup industrial clusters near ports that will produce cars at reduced rates, a move that is expected to be made possible through recycled parts.

 

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