Iran rests hope on scrappage scheme to create jobs, clean air
Baku, Azerbaijan, Feb. 11
By Farhad Daneshvar – Trend:
Iranian government has cherished its hopes in a new vehicle scrappage scheme to tackle the widespread unemployment and air pollution.
Iranian President Hassan Rouhani on Monday introduced the government plans to launch the scheme on replacing the aged commercial vehicles with the new ones.
"Job creation is among the most significant targets of the government in the implementation of the scheme," President Hassan Rouhani said at a ceremony on unveiling the scheme.
Iran's Vice President for Economic Affairs Mohammad Nahavandian has said that the government’s scheme is expected to create at least 30,000 job opportunities in automotive and car part making industries.
Management and Planning Organization of Iran through its latest report has forecasted an unemployment rate of 12.1 percent with an economic growth of five percent over the next fiscal year (starting Mach 20).
In the meantime, the presidential aide has expressed hope that the scheme would contribute to plans on reducing the level of air pollution in large cities.
The government estimates that there are about 200,000 aged trucks and mini-trucks across the country, blaming the aged transportation system for the 70 percent of air pollution in the country.
Heavy air pollution shrouded capital Tehran’s sky alongside with several other large cities over the past months, shutting down schools in the megacity for days.
The air quality index of Tehran in some days hit 178, far beyond the acceptable threshold of 50.
The scheme seeks to fund 50 percent of the cost of production of the new vehicles through economizing fuel consumption, about $1 billion.
"Saving energy is a significant pillar of the implementation of scheme. According to the statistics, after the implementation of the scheme the country will save about 5.5 million barrels of oil on a daily basis. This will allow us increase the volume of our exports and gain more income in foreign currency," Rouhani said.
Under the scheme, the owners will pay half of the price of the new vehicle in installments.
The policymakers have pledged to deliver the new vehicles as soon as the owners hand over the aged vehicles.
The scheme has envisaged that the owners will pay only half of the price of the new vehicle out of which 20 percent will be made in down payment and the rest will be paid through banking loans.