Nitin Gadkari Urges FM To Consider Additional GST Benefits To Customers With Scrappage Certificate

Speaking at the 65th SIAM (Society of Indian Automobile Manufacturers) Convention, the Minister of Road, Transport and Highways, Nitin Gadkari, revealed that he has requested the Finance Minister, Nirmala Sitharaman, to provide additional GST cuts to customers who come with a scrappage certificate. The minister was speaking on Atma Nirbhar Bharat and how scrappage can help bring in more revenue. 

The minister revealed that in August alone, 3 lakh vehicles were scrapped, of which 1.4 lakh were government vehicles. He further revealed that 60 lakh tons of steel were exported from the country, which came from scrapping old vehicles. Besides steel, the scrap industry also has the potential to give us other materials like rare earth minerals that are helping develop the semiconductor industry in the country. This generation will help reduce the country’s dependence on imports of such materials. 

To further this growth, Gadkari urged Indian automobile manufacturers to come up with more scrapping centres and also provide additional discounts to customers who are buying new vehicles after scrapping their old vehicles. He also stated how the scrappage industry reserves the potential to generate 70 lakh additional jobs

Besides the scrappage policy, the minister also urged automotive manufacturers to reduce air pollution. “The most important problem for our country is air pollution. The transport sector contributes 40% air pollution,” the minister stated, while also stating that the introduction of E20 fuel is pivotal to curbing this problem. 

Aside from the importance of biofuel, Nitin Gadkari also urged OEMs to develop driver training centres, especially for those involved in the last-mile connectivity sector. “Safety should be taken seriously,” Gadkari emphasised. As part of better vehicles, Gadkari also mentioned the importance of having better safety technology in trucks.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki told Acko Drive at the sidelines of the convention that, the brand is already committed to the scrappage policy and that "we have a better offer for our consumers who are going to scrap their vehicles." He also said Maruti Suzuki has a dedicated scrappage centre in Noida.