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Home / Business / Vehicle scrappage policy to be announced in a month

Vehicle scrappage policy to be announced in a month

A GST cut to 18% from 28% is a key demand
Policy is aimed at  scrapping old vehicles  in exchange of some  incentives for consumers

Our Special Correspondent   |   Calcutta   |   Published 06.09.20, 03:34 AM

The government on Saturday said it will announce an incentive-linked scrappage policy for the automobile industry within a month.

The auto industry has been demanding the scrappage policy along with a GST reduction to 18 per cent from 28 per cent to kick start demand ahead of the festive season.

Speaking at 60th annual convention of the Association of Auto Component Manufacturers’ Association (Acma), Niti Aayog CEO Amitabh Kant said the scrappage policy was at a “very very advanced stage” of inter-ministerial discussions. 

Union minister of road, transport and highways Nitin Gadkari stressed on the importance of developing infrastructure such as roads,  which would have a direct spinoff on the auto industry. 

Railway minister Piyush Goyal said to help the auto industry with affordable logistics options, Indian Railways is ready to reduce its freight rate. 

“This will also save diesel and trucking cost for the industry,” he said.

Suzuki Motor Corporation chairman Osamu Suzuki said its group companies in India will make best efforts to recover production and sales to reach pre-Covid -19 levels. “I am confident that your country will surely revive and grow furthermore,” Suzuki said.

Mahindra & Mahindra managing director Pawan  Goenka said auto makers were committed to reducing imports by half in the next four to five years. According to him,“Unfavourable FTA is playing havoc on the competitiveness of the auto industry. Power tariff and logistic costs also add to the industry’s burden.”

Tata Motors MD and CEO Guenter Butschek called for a collaborative approach among suppliers, strategic partners and original equipment manufacturers.

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