The government said a Cabinet note has been formulated for the vehicle scrappage policy.

“Ministry of Road Transport and Highways (MoRTH) has formulated a note for Cabinet on creation of an ecosystem for voluntary and environment friendly phasing out of unfit and old polluting vehicles,” Minister of State for Road Transport and Highways V.K. Singh told the Rajya Sabha in reply to a query.

The proposed policy, once approved, will be applicable on all vehicles, the government had said earlier.

The policy was sent for a fresh round of consultation with stakeholders on the direction of the PMO.

Road Transport and Highways Minister Nitin Gadakri had said earlier this year that once the policy was approved, India could emerge as a hub for automobile manufacturing as key raw material available from scrapping steel, aluminium and plastic were bound to be recycled, bringing down automobile prices by “20-30%.” On July 26, 2019, the government had proposed amendments to motor vehicle rules to allow scrapping of vehicles older than 15 years to spur adoption of electric vehicles.