Gadkari Pushes Auto Industry to Boost Vehicle Scrappage, Defends E20 Fuel
Union Minister Nitin Gadkari has urged the auto industry to offer discounts on new vehicles against scrappage certificates, stressing its economic and environmental benefits. He also defended the E20 ethanol fuel programme, calling it cost-effective, farmer-friendly, and vital for reducing crude imports.
- Republic Business
- 2 min read
Union Minister for Road Transport and Highways Nitin Gadkari on Thursday urged the Indian automobile industry to offer greater incentives to customers who scrap old vehicles while purchasing new ones. Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Gadkari said such measures would create a “win-win” scenario, benefiting both the industry and the government.
He highlighted that scrappage not only boosts demand for new vehicles but also supports the domestic availability of key metals such as steel, aluminium, platinum, and palladium, which are otherwise imported. “Currently, an average of 16,830 vehicles is being scrapped every month, and private investment in scrappage stands at Rs 2,700 crore. If fully implemented, the policy could generate an estimated Rs 40,000 crore through GST and create 70 lakh jobs,” Gadkari noted. He added that scrappage would help reduce pollution, improve turnover for manufacturers, and strengthen the country’s metal supply chain.
The minister also said he had requested Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to provide GST relief to buyers of new vehicles who submit scrappage certificates.
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On ethanol-blended fuel, Gadkari defended the E20 programme, dismissing criticism as politically motivated. He emphasized that E20 is cost-effective, pollution-free, and an import substitute, reducing reliance on fossil fuels worth Rs 22 lakh crore. Highlighting benefits to farmers, Gadkari said the initiative has increased corn prices from Rs 1,200 to Rs 2,800 per quintal, boosting farm incomes by around Rs 45,000 crore.
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Gadkari also underlined road safety and environmental standards, noting that India, which directly shifted from BS IV to BS VI, would align with BS7 norms in the future. He pointed to the sector’s growth, observing that India’s automobile industry has become the third largest globally, and expressed confidence that collective efforts could take it to the top