Vehicle scrapping a 'win-win' policy: Gadkari

New Delhi: Union Minister Nitin Gadkari on Thursday said the vehicle scrapping policy will be a 'win-win' policy that will help improve fuel efficiency and reduce pollution.

Making a statement regarding the vehicle scrapping policy in the Lok Sabha, the Road Transport, Highways and MSMEs Minister said the policy will also lead to an increase in the country's automobile industry turnover to Rs 10 lakh crore from the current Rs 4.5 lakh crore. According to the statement tabled in the Lok Sabha, the "scrap value for the old vehicle given by the scrapping centre, which is nearly 4-6 per cent of the ex-showroom price of a new vehicle".

Besides, State governments will be advised to offer a road tax rebate of up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles. As per the statement, vehicle manufacturers are also advised for providing a discount of five per cent on the purchase of a new vehicle against the scrapping certificate.