Nitin Gadkari, Union Minister for Road and Transport has asked all manufacturers to give more incentives and discounts on buying new vehicles after the old vehicles are scrapped. An estimated amount of Rs. 50000 to Rs. 1 lakh can be awarded for trucks and buses and the amount of discount can be reduced if the car is smaller in size. This move would be beneficial to scrape vehicles according to him.
“My request to you I do not want to make it mandatory because some companies are ready and some are not is that you may give some discounts to persons who have scrapping certificates,” Gadkari said at the 62nd annual convention of Society of Indian Automobile Manufacturers (SIAM).
Minister had added that the steel ministry led by Jyotiraditya Scindia and the transport ministry had approached the finance ministry to give GST concessions for such discounts and that it will be a “win-win” situation for both sides. He stated that each old truck produces as much pollution as 15 new vehicles, underscoring the necessity of dismantling. “Currently, 1.02 crore automobiles can be submitted for scrap, according to our records. There are just 10 to 20 scrapyards “Gadkari remarked.
There is potential to open three scrapping centres in each area, according to the Union Minister. “You may buy copper, aluminium, steel, rubber, and plastic from such centres, which will also allow you to save 30% on the cost of your components. People who recycle their cars would boost the auto industry’s “business by 25%-30%,” he continued.
Mr Gadkari also mentioned the increase in petroleum imports which have increased and are leading to the increase in pollution and is also creating economic problems for the country.