New Scrappage Policy to Provide Huge Boost to Metal Recycling

SEATTLE (Scrap Monster): The latest research report published by Grant Thornton Bharat states that the recently announced vehicle scrappage policy by the Indian administration is likely to provide major boost to metal recycling sector in the country. Also, it is likely to bring about major changes in the future of automotive industry.

The report notes that the policy is a win-win situation not only for the auto industry, but also for various other stakeholders, mainly due to its potential to generate employment and reduce pollution. The scrappage policy calls for mandatory scrapping of passenger vehicles older than 15 years and commercial vehicles older than 20 years, if they fail to pass fitness and emission tests.

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The metal recycling business awaits key opportunities. The materials recovered as a result of the scrappage policy could be used for manufacturing of new items, which in turn will result in rationalization of prices to a certain extent. Although, the policy promises to lower the cost of production, it has to be seen whether the actual benefits will be passed on to customers, the report said.

The report noted that the policy has the potential to generate demand for new vehicles, create new job opportunities and reduce environmental pollution.