New Delhi: Government proposal to remove 10-year old vehicles from roads will produce steel scrap worth Rs 11,500 Cr annually, cutting the country’s steel imports. The government is eyeing a huge quantity of steel scrap from its proposed Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that offers incentives worth 8-12 per cent of the cost of a new vehicle for surrendering the old one.
This will help reduce India’s import burden and improve the foreign-exchange reserves. “In addition to environmental and energy efficiency benefits, the V-VMP would be able to generate steel scrap worth Rs 11,500 crore domestically every year with the set-up of organised shredding centres of which 50 per cent would be generated by MHCVs (buses and trucks),” the government has said in its proposed policy.
Analysis of segment and age of vehicles causing air pollution has shown that MHCVs (Medium & Heavy Commercial Vehicles) constitute just 2.5 per cent of the total fleet but contribute to 60 per cent of pollution. Besides, the older vehicles, typically more than 10 years of age and pre-BS I compliant, constitute 15 per cent of the total fleet but pollute 10-12 times more than a new vehicle because of drastic change in pollution norms, the government has said. The Ministry of Road Transport and Highways said the V-VMP will be applicable on the vehicles bought on or before March 31, 2005.