Union minister for road transport and highways, Nitin Gadkari, on Thursday said the vehicle scrappage policy is likely to be finalised soon to boost the automobile sector.

“The scrapping policy will be finalised soon. It is going to boost the industry. It is going to reduce the production cost. We will make it as early as possible,” Gadkari said.

The vehicle scrappage policy is awaiting final clearance from the Union cabinet and will focus on eliminating the fleet of old polluting commercial vehicles. The proposed policy, once approved, will be applicable on all vehicles, including two and three-wheelers.

On the Bharat Stage-IV compliant inventory, the minister said that the government was bound by the Supreme Court’s verdict. However, on industry’s request, he will get the matter examined afresh. In March, the apex court relaxed the March 31 deadline for winding up sales and registrations of BS-IV vehicles amid a countrywide lockdown.

The government will also look into the suggestions of the automobile industry and give extension in timelines, wherever possible, without compromising on road safety norms.

MSME funds

Pitching for funds to the MSME sector, Gadkari said the sector was on the verge of collapse and urged major industries to release the outstanding dues owed to them within a month.

He said that the position of MSMEs was the “worst” as they were now engaged in a “battle for their survival”.