Union Minister for Road Transport Nitin Gadkari on Tuesday said that the Government is considering a proposal to give buyers additional concessions on buying new vehicles after scrapping of their old vehicles.

“We will once again sit and discuss with the Finance Ministry to see if we can give more concessions. We have planned something… this will facilitate [vehicle scrapping] and will help reduce pollution,” Mr Gadkari said.

Also read: Explained | Voluntary Vehicle Fleet Modernisation Programme

Mr Gadkari was speaking at the inauguration of Maruti Suzuki Toyotsu India Private Limited’s (MSTI’s) government-approved End-of-Life Vehicles (ELVs) scrapping and recycling unit in Noida.

“I have requested OEMs, it is not mandatory. Sales will go up by 12-13% after the scrappage policy… OEMs will also get the benefit. Plus, for Centre and State the GST will go up, so they should also give incentive,” Mr Gadkari said, adding that he is also requesting the GST Council to explore what more incentives can be provided under the National Automobile Scrappage Policy.

Also read: Junk inefficiency: On vehicle scrappage policy

“The final decision (on providing more incentives under the National Automobile Scrappage Policy) will be taken by the finance ministry and the GST Council,” he said.

MSTI, a joint venture between Maruti Suzuki and Toyota Tsusho group, said the 10,993 sq m facility has a capacity to scrap and recycle over 24,000 ELVs annually and has been built with an investment of over ₹44 crores. All the equipment being used at the facility are manufactured in India, it added.