Indian domestic scrap availability is expected to get a significant boost with the new vehicle scrap policy expected to scrap at least 1.5 million heavy vehicles in the first phase, a senior government official said.
The official said that the draft Voluntary Vehicle Fleet Modernization Program will be ready within the next two weeks and will be put into effect soon thereafter.
While an estimated 28 million vehicles over 20 years old will be targeted to be scrapped under the scheme, the official said that in the first phase 1.5 million medium and large commercial vehicles will be scrapped.
The scrapping will be done at industrial clusters in the western Indian state of Gujarat and to begin with an estimated $800 million will be saved as the rising domestic scrap generation will replace import scrap.