Auto Industry asks for faster implementation of scrappage policy, seeks incentives from Nitin Gadkari

Nitin Gadkari and the auto industry discussed the impact of COVID-19 on the sector and green shoots that are visible as far as sales in the month of October are concerned, sources said.

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New Delhi: Road Transport and Highways Minister Nitin Gadkari and the auto industry met on November 2 and discussed the overall outlook of the sector. Industry body SIAM (Society of Indian Automobile Manufacturers) led by its President Kenichi Ayukawa presented a whole lot of issues affecting the sector. 

The Union minister and the industry discussed the impact of COVID-19 on the sector and green shoots that are visible as far as sales in the month of October are concerned, sources said. 

The industry asked for faster approval and implementation of the scrappage policy, said the sources, adding that Industry also asked for incentives under the Scrappage policy. 

The Road Transport and Highways Minister has assured the auto industry that the policy will be approved soon. 

Discussions on GST rates for the sector were also discussed but no conclusive decision was taken on that. Gadkari urged the industry to work on alternate fuel and flex-fuel technology and also spoke about reducing oil imports. 

Nitin Gadkari also asked the industry to work on Aatmanirbhar Bharat and reduce imports. 

Sources also pointed out that Industry sought deferment of some emission and safety norms that the government plans to get in the near future and the minister gave a patient hearing to the industry's request.

Gadkari, who also holds the MSME portfolio, stressed on the fact that the auto components sector should improve production, technology, and quality and take advantage of India's cost-competitive labour to be a force.