Amid the automobile sector facing a sector-wide slowdown including commodity transport vehicles like trucks, Union Road Transport and Highways Minister Nitin Gadkari has said that the centre is working on bringing in a scrappage policy for old vehicles.
The policy has been a demand of the sector since long, with the potential to boost the heavy vehicle sales. The policy will also give rise to scrappage centres for the vehicles as several vehicles being operated on Indian roads across sectors are now decades old.
“The policy is in the works. It has to be cleared by the finance ministry. There are some issues which have to be resolved with state government and stakeholders. It will be announced shortly,” Gadkari said.
Gadkari also informed that the ministry is looking into the GST rate cut demand of the automobile industry and the issue has been taken up with the Finance Ministry. Rates for various classes of goods are decided by the GST council which is scheduled to meet on 20 September.
“Any decision to cut rates will be taken by the GST Council, in which both the central government and the states governments are stakeholders. The ball is in their court,” he said.