To encourage hybrid and CNG vehicles, I will pursue with Finance Ministry to give some subsidy to such vehicles, Road Transport and Highways Minister Nitin Gadkari on Thursday said.
“We are trying to convince the Finance Minister again when we meet in the next few days on giving subsidy. Ultimately, the Finance Ministry has to approve such a decision. And, this a subject of the State governments,” Gadkari said at the 62nd SIAM Annual Convention here.
He urged automobile manufacturers to adopt new technology to reduce costs, provide more comfort to customers, reduce imports and increase exports.
"I tell my friends in the automobile sector that you should be quality centric, not cost centric. because choices of people are changing," he said.
He said he will also talk to the Steel Ministry to request Finance Minister Nirmala Sitharaman to offer a GST tax benefit on the scrapping of vehicles.
Manufacturers should focus on converting ‘waste to wealth’ and there are over 1.2 crore vehicles that are scrappage worthy, added Gadkari.
The vehicle scrappage policy has come into effect from April 1, 2022. Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.