Road Transport and Highways Minister Nitin Gadkari on Thursday said the Ministry is pursuing the long-delayed vehicle scrapping policy to support the domestic automobile industry amid the covid-19 pandemic. He also set a target of constructing roads worth 15 lakh crore over the next two years which can engage more manpower to put back the economy on tracks.
"I have been trying to pursue the scrapping policy for the last two years. We need cooperation from other ministries, stakeholders. Have told the secretary to follow it up as soon as possible. This is one of the steps to boost the industry because it will reduce production," Gadkari said in a video conference with the society of Indian automobile manufacturers (SIAM).
“I will find out what are the obstacles. We will clear it and go ahead," he said.
The vehicle scrappage policy, which awaits clearance from the finance ministry, aims to eliminate the fleet of old polluting vehicles and boost demand.
The coronavirus-led crisis has only made matters worse for the local auto sector that was already struggling due to weak demand. The imposition of the nationwide lockdown had halted all economic activities, adding to the woes of businesses.
The automobile industry continues to expect tepid demand in near term as it believes that normalcy in businesses may not be restored immediately even if the lockdown is lifted completely.
The proposed policy had got a fresh push in August last year even when the automobile sector reeled under slowdown pressure. Separately, the road ministry had issued draft guidelines in October to set up vehicle scrapping centres in the country to protect the environment and promote a legally-backed dismantling and scrapping industry.
During the meeting in the presence of officials, Gadkari informed that he has set a target of constructing roads worth Rs 15 lakh crore in the next two years. He said, his ministry is working overtime to clear all arbitration cases with concessionaires.
On the question of BS4 vehicles, he said, the govvernment is bound by Supreme Court verdict on the same. However, on industry suggestion, he will get the matter examined afresh.
Regarding relaxations sought on other regulations, Gadkari stated that he will endeavour to provide relief wherever possible where industry is seeking extension of time.