The government should consider establishing scrapping centres for vehicles in foundry clusters such as Coimbatore, Rajkot and Kolhapur, according to Coimbatore chapter of the Institute of Indian Foundrymen (IIF).
Welcoming the vehicle scrappage policy announced by the Central Government recently, the Coimbatore president of IIF S. Balraj said the present proposal of 15 years for commercial vehicles and 20 years for cars for scrapping are reasonably fine considering factors such as emission generated from vehicle, engine efficiency, fuel efficiency and safety.
However, since scrapping of vehicles involves the sentiments of the vehicle owners, the government should not force the users to scrap the vehicle. Instead, it should have more measures such as the Green Tax proposed.
The government should consider GST benefits for those exchanging the old vehicles.
Similarly, the resale /scrap value should be reasonably good so that owners will go in for scrapping of old vehicles. Interest-free loans or minimum interest should be extended for those exchanging the old vehicle for a new one.
Similarly, mileage benefits should be introduced on diesel price which can be achievable only with new vehicles. The government should come out with a special policy for vintage cars as these are collected by many.