Send 97 lakh vehicles to scrap, Nitin Gadkari said – GST benefit of Rs 40,000 crore, India’s auto sector will become number one.

New Delhi. Union Minister Nitin Gadkari made a big proposal in front of the automobile industry. He said that if 97 lakh unusable and polluting vehicles across the country are scrapped, the government can get GST worth Rs 40 thousand crore. This will not only increase government revenue, but will also create about 70 lakh new jobs. Gadkari says that this step can make India the world’s number one automobile hub in the next five years.

Current status of scrapping policy
India’s Vehicle Scrapping Policy (V-VMP) is designed to scrap old and unsafe vehicles. But progress has been slow so far. Only 3 lakh vehicles have been scrapped by August 2025, out of which 1.41 lakh were government vehicles. At present, on an average only 16,830 vehicles are being scrapped every month. The private sector has invested Rs 2,700 crore in creating this ecosystem. Gadkari has appealed to auto companies to give at least 5 percent discount on new vehicles to customers who bring scrappage certificates, so that people can join this scheme faster.

Promise of cheap parts and clean air
Gadkari says that if the scrapping policy is followed properly, the cost of auto components can reduce by 25 percent. Because the steel, aluminum and other metals coming out of scrap will return to the supply chain. Also, removing old vehicles will reduce pollution, reduce fuel consumption and strengthen road safety standards. Gadkari said that India spends Rs 22 lakh crore every year on importing petrol and diesel, which is not sustainable in the long run.

Roadmap to the future: Ethanol and energy security
India’s current auto sector is worth Rs 22 lakh crore, while China’s is at the level of Rs 47 lakh crore and America’s is at the level of Rs 78 lakh crore. Gadkari expressed confidence that India will soon leave them behind. For this, the government is emphasizing on ethanol production and blending. At present the country is moving from E20 to E27 mixture. He said that Brazil has been running on 27% ethanol blended petrol for 49 years, India can also do the same. Gadkari also linked road safety to national security and said that only pollution control, fuel self-sufficiency and safe transportation will make India strong.