Scrapping of 97 lakh old vehicles will bring a profit of Rs 40,000 crore, Gadkari appeals for discount on new vehicles

News Topical, Digital Desk : Union Road Transport and Highways Minister Nitin Gadkari said on Friday that if all 97 lakh polluting vehicles in the country are converted into junk, then the Center and the states will get a benefit of up to Rs 40,000 crore in the form of GST. He said that till August, three lakh vehicles have been declared junk, including 1.41 lakh government vehicles.

Addressing the annual conference of the automobile component manufacturers' body 'Acma', Gadkari said, “According to our estimate, about 97 lakh vehicles need to be converted into scrap. If this happens, 70 lakh jobs will be created and the Center and the states will get about Rs 40,000 crore as GST revenue.”

Give exemption to those who submit scrap certificate

He urged the private sector to give at least five percent discount while purchasing new vehicles to those customers who submit a certificate of scrapping their vehicle.

Focus on reducing dependence on imports by increasing ethanol production

Gadkari said that currently an average of 16,830 vehicles are being scrapped every month and the private sector has invested Rs 2,700 crore in this sector. Gadkari also focused on energy security and fuel imports. He said that India imports petrol-diesel fuel worth Rs 22 lakh crore every year and dependence on imports can be reduced by increasing ethanol production from agriculture.

E-20 petrol is currently being used with minor engine modifications while any decision on mixing E-27 will be taken only after all investigations are completed. Expressing concern over road safety, he said that in 2023, five lakh road accidents occurred in which 1.8 lakh people died. Of these, 66 percent were in the age group of 18-34 years.

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