Gadkari seeks extra discounts for buyers with vehicle scrapping certificate

Speaking at Siam's event, Nitin Gadkari said he has requested PM Modi and FM Nirmala Sitharaman to offer GST relief to customers buying a new vehicle after scrapping their old one

Union Minister for Road Transport and Highways Nitin Gadkari on Thursday urged automobile manufacturers to extend additional discounts to buyers who present a scrappage certificate while purchasing new vehicles.

 

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (Siam), Gadkari said he has requested Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to offer Goods and Services Tax (GST) relief to customers buying a new vehicle after scrapping their old one, news agency PTI reported

 

Gadkari bats for additional discounts

 

The Union minister described such incentives as a “win-win” measure that would not only encourage the scrapping of old vehicles but also benefit the industry by ensuring a supply of raw materials such as scrap metals, which are currently 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. "The government will also get GST. And the pollution of the country will be reduced. So you should definitely contribute to this."

 

"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 ₹40,000 crore," the minister noted.

 

India's steel scrap import at 6 million tonnes: Gadkari

 

According to Gadkari, around 16,830 vehicles are being scrapped every month, with private players investing nearly ₹2,700 crore in the sector.

 

The minister said the steel scrap imported in India is at 6 million tonnes. In addition, several critical metals that are currently in short supply and need to be imported can also be recovered through scrapping. He further said that only six per cent of aluminium has been made available via imports.

 

Moreover, recycling of scraps will help in creating seven million additional jobs, and with the help of scraps, the country would be able to obtain metals such as steel, lead, aluminium, platinum, palladium, etc, he said.

 

Gadkari slams campaign against E20 fuel

 

The Minister for Road Transport and Highways also slammed the controversy around E20 fuel, which mandates 20 per cent ethanol blending in petrol. Dismissing criticism of the initiative, he called the criticism "politically motivated". 

 

His comments came after the Congress accused him of "aggressively lobbying" for ethanol production while his sons were allegedly linked to companies in the sector that profited from government policies.

 

Gadkari also addressed the concerns put forth by industry experts and consumers over ethanol-mixed E20 fuel. He said that ethanol blending reduces crude oil imports, is cost-effective, non-polluting, and is produced domestically.

 

What's the controversy around E20 fuel?

 

Recently, different social media platforms saw a section of vehicle owners flagging concerns related to the use of E20 fuel in E10-compliant vehicles. According to a LocalCircles survey, 28 per cent of petrol vehicle owners, who bought cars in or before 2022, reported facing abnormal wear and tear and repair requirements.