Prime Minister Narendra Modi launched the Voluntary Vehicle Fleet Modernisation Programme or the automobile scrappage policy on August 13. The Prime Minister announced that the vehicle scrappage policy would make investments of about Rs 10,000 crore During a virtual meeting at the Investor Summit in Gujarat. He also said that Alang in Gujarat could become the centre for vehicle scrapping.

Union Minister for Road Transport & Highways Nitin Gadkari was also present at the event. He said the scrappage policy would possibly decrease the raw material costs by around 40 per cent. He also said that the policy would help India convert into an industrial hub of automobile manufacturing.

Gadkari added that testing centres would be set up in the regions across the country using the public-private partnership (PPP) model. The policy mainly aims to incentivise owners of old and polluting vehicles to take them off the road. Cars that are around 15-20 years old will be eligible for scrapping.