Scrapping of 9.7 million vehicles could generate Rs 40,000 crore GST revenue: Gadkari
New Delhi, Sept 12 – Union Minister for Road Transport and Highways Nitin Gadkari said on Friday that if all of India’s 9.7 million unfit and polluting vehicles were scrapped, the central and state governments could collectively gain up to Rs 40,000 crore in GST revenue. He noted that as of August, around three lakh vehicles had already been declared scrap, including 1.41 lakh government vehicles.
Addressing the annual convention of the Automotive Component Manufacturers Association (ACMA), Gadkari explained that scrapping these vehicles could also create 70 lakh new jobs across the country. He urged the private sector to extend at least a five percent discount on new vehicles to customers who submit scrap certificates.
According to the minister, an average of 16,830 vehicles are currently being scrapped each month, while the private sector has already invested nearly Rs 2,700 crore in the vehicle scrappage ecosystem. The government has implemented the Voluntary Vehicle Fleet Modernization Programme to gradually phase out vehicles that are no longer environmentally sustainable and contribute to rising pollution levels.
As per agency report, under existing motor vehicle regulations, fitness checks for commercial vehicles are mandatory every two years up to eight years of age, and annually thereafter. Private vehicles are required to undergo fitness checks after 15 years, while government vehicles are automatically retired after 15 years of use.
Gadkari also emphasized the importance of reducing India’s dependency on imported fossil fuels. He said the country currently spends Rs 22 lakh crore annually on petrol and diesel imports, and greater production of ethanol from agriculture could significantly reduce this burden. At present, E20 petrol is being used with minor engine modifications, while a decision on E27 blending will be taken once all technical evaluations are complete.
On road safety, the minister voiced concern over the alarming statistics, stating that India recorded five lakh road accidents in 2023, leading to 1.8 lakh deaths. Of these fatalities, 66 percent were people between the ages of 18 and 34.
Despite these challenges, Gadkari expressed confidence that within the next five years, India would emerge as one of the world’s leading automotive industries.
