Road Transport and Highways Minister Nitin Gadkari on Thursday said he will pursue the Finance Ministry to give some subsidy on hybrid and CNG vehicles, in the coming days.
“We are trying to convince the Finance Minister on this as the subject comes under her Ministry only, and we will try and pursue her again when we meet in the next few days ... ultimately, the Finance Ministry has to approve such a decision. And, this a subject of the State governments,” Gadkari told BusinessLine on the sidelines of the 62 nd SIAM Annual Convention here.
‘Waste to wealth’
Speaking at the event, Gadkari said he will also talk to the Steel Ministry to request Finance Minister Nirmala Sitharaman to offer a GST tax benefit on scrapping of vehicles. “The pollution from old trucks is equal to the pollution of 15 new trucks, so it is imperative that we scrap them. I request vehicle makers to offer a discount to a buyer who has a scrappage certificate,” he said.
Manufacturers should focus on converting ‘waste to wealth’ and there are over 1.2 crore vehicles which are scrappage worthy, added Gadkari. There is a potential of using the copper, aluminium, steel and rubber scrap, recycling them and using it for self consumption, which can save cost by 30 per cent, he noted.
“Convince me or get convinced by me. We are with you, we will achieve the goal of ₹15-lakh crore for the auto industry in the next five years,” he added.
Nitin Gadkari, Minister of Road Transport & Highways speaking at the 62nd SIAM Annual Convention
To increase the usage of electric vehicles, the government, in Budget 2022-23, had increased its subsidy scheme for the purchase of EVs. Under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the government shall provide a subsidy of up to ₹2,908 crore, it had announced.
The first phase of FAME began in April 2015, and it lasted till 2019 after numerous extensions. Phase 2, which began soon after the first phase, was supposed to end in March this year. However, the government has extended the period till March 2024. This phase has supported over two-lakh vehicles, and the subsidy has amounted to ₹900 crore.