Prime Minister Narendra Modi has launched the Voluntary Vehicle Fleet Modernisation Programme, or better known as the automotive scrappage policy at the Investor Summit in his native Gujarat. The vehicle scrappage policy has been in the works for a while now, and it finally got the green light from the government.

Modi said that the policy will bring in investments of around ₹ 10,000 crore. He also said that Alang in Gujarat - already a hub for shipping scrappage - can become the hub for vehicle scrapping, NDTV reported.

Modi in a series of tweets wrote, "The launch of Vehicle Scrappage Policy today is a significant milestone in India's development journey. The Investor Summit in Gujarat for setting up vehicle scrapping infrastructure opens a new range of possibilities. I would request our youth & start-ups to join this programme."

"Vehicle scrapping will help phase out unfit & polluting vehicles in an environment-friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible."

He also said that the current method of scrapping materials is not productive.

Speaking about the benefits of the scrappage policy for the common man, Modi said, "Firstly, a certificate will be given on scrapping of the old car, which will ensure that an individual does not have to pay registration fees while buying a new car. He will also get a discount on road tax. Secondly, a person will save money on maintenance cost, repair cost and fuel efficiency of the old car. The third benefit is directly related to life. There will be some relief from the high risk of road accidents due to old vehicles and old technology. Fourth, it will reduce the harmful impact of pollution on our health."