Support Vehicle Scrapping With Discounts: Gadkari
Gadkari said that it was a ‘win-win’ for both industry and the government, as this could help the private sector also with the availability of scrap metals, which are imported
New Delhi: Defending the old-vehicle’s scrapping policy, Union road transport and highway minister Minister Nitin Gadkari on Thursday urged the automobile industry to consider offering additional discounts to customers who submit a scrappage certificate while buying a new vehicle. “I have requested Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman to give GST relief to those buying a new vehicle after scrapping their old vehicle,” Gadkari said.
Gadkari said that it was a ‘win-win’ for both industry and the government, as this could help the private sector also with the availability of scrap metals, which are imported. “If you will give some discount to those who will scrap the vehicle, to buy a new vehicle, then your turnover will increase a lot,” he said, while speaking here at the annual convention of the Society of Indian Automobile Manufacturers (SIAM).
The minister also said that the Centre will also get GST and the pollution of the country will be reduced. “I urge the industry to consider offering good discounts to those buying a new vehicle after submitting a scrap certificate of the old vehicle. So you should definitely contribute to this. At present, an average of 16,830 vehicles are being scrapped monthly, and the private sector has invested Rs 2,700 crore,” the minister said.
Gadkari also said that the steel scrap that we import into our country is 60 lakh tonnes. “And apart from this, the very important metals, due to which there is a shortage, which you have to bring from outside, can also get from scrapping. Only 6 percent of aluminium has been made available through imports. If all vehicles are scrapped, then through GST, the new additional vehicles that people will buy will benefit the state governments and the Indian government by Rs 40,000 crore,” he said.
The automobile industry, he said, would also benefit from the additional demand, which will be created after scrapping. “So, looking at both these win-win situations, if you support the scrapping certificate in some of the incentives, then I think it will take our country and this industry forward. Moreover, scraps will be recycled, creating 70 lakh additional jobs. Through scraps, metals such as steel, lead, aluminium, platinum, palladium, etc, will be obtained from it,” he added.
On concerns about ethanol-mixed E20 fuel expressed by experts and consumers, the minister said that there is no truth in it and everything has been clarified. “Ethanol helps cut imports, and is cost-effective, pollution-free and indigenous. Farmers will benefit by Rs 45,000 crore. Our agricultural growth rate is very low. So, this diversification of agriculture towards the energy and power sector is not wrong for the benefit of farmers,” said Gadkari.
