Budget 2021: Pune businesses, auto industry will benefit most from vehicle scrappage policy, says MCCIA
Maharashtra accounts for approximately 35.1 per cent of the country’s output of automobiles by value
Pune: The Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) has said that the vehicle (auto) scrapping policy will benefit Maharashtra and in particular Pune region the most.
Maharashtra accounts for approximately 35.1 per cent of the country’s output of automobiles by value. It has leading auto industry hub of the country with market share of 21 per cent in India.
"Most of the auto industries are located in Pimpri-Chinchwad, Ranjangaon and Chakan area. These industries will definitely benefit from the auto scrappage policy," said Prashant Girbane, Director General of MCCIA.
MCCIA in its press release has said that "We have been demanding the auto scrapping policy for a long time. Voluntary auto scrappage policy would mean old (15 years for commercial vehicles and 20 years for private vehicles) would need to be scrapped and thereby creating demand for new vehicles which will lead to additional production that sustains and creates additional jobs in the auto sector."
"It also helps in reducing pollution, thereby helping the environment. By some estimates about 28 million vehicles could go off the roads by 2025," the statement read.
VEHICLE SCRAPPING POLICY
Earlier, during the budget speech Finance Minister Nirmala Sitharaman had said, “We are announcing a vehicle scrapping policy to phase out old, unfit vehicles. This will help in fuel-efficient environment-friendly vehicles, reduce pollution and also fuel import bills."
“Personal vehicles will have to undergo fitness tests in 20 years and commercial vehicles will have to do the same in 15 years at the automated fitness centres,” Sitharaman had said.