Union Minister for Road Transport & Highways Nitin Gadkari has urged carmakers to establish more vehicle scrapping centres, addressing the current shortfall in India’s scrapping infrastructure. During a convention held by the Society of Indian Automobile Manufacturers (SIAM), Gadkari noted that India has 63 operational scrapping centres, 60 under construction, and 40 planned, but this is still insufficient given the country’s automobile population.
Gadkari highlighted the significant potential of the scrapping industry, which he believes could drive economic growth and benefit both the government and automobile producers. He referenced success stories from Germany and the US, where scrapping initiatives have boosted sales by 12% and 15%, respectively. He anticipates an 18-20% increase in sales in India, along with the creation of approximately 35,000 jobs. Gadkari also commended SIAM for offering a 3% discount on new vehicle purchases when old cars are scrapped.
In addition, Gadkari announced the upcoming establishment of a new Rs 450 crore testing agency in Pune. This facility, expected to be operational within three months, aims to enhance the quality of vehicles and support the automobile industry. He emphasized the importance of world-class testing agencies for boosting exports and meeting quality standards. He urged manufacturers to focus on high-quality designs and alternative fuel options to remain competitive globally.
Gadkari discussed the potential of alternative fuels, including CNG, which he said has grown from 750 stations in 2014 to 6,000 today. The goal is to expand to 20,000 CNG stations by 2030. He also mentioned the benefits of methanol and LNG, noting that LNG-powered trucks could save up to Rs 12 lakh annually and recover their costs within two years. Methanol and CNG are being explored for use in construction equipment as well.
The minister expressed the need for futuristic planning, including the development of hydrogen technology. He pointed out that India could produce 5 million metric tonnes of hydrogen per year, which could generate 125 GW of energy and create 6 lakh jobs with an investment of Rs 8 lakh crore. However, he acknowledged the challenge of reducing the cost of hydrogen to $1 per kg to make it competitive in the market.
Gadkari also highlighted the automobile industry's significant role in India's economy, noting its worth of Rs 22 lakh crore and its potential to become the top industry globally. He praised the sector’s contribution to manufacturing, employment, and GST revenue, and emphasized the need for continued progress in electric vehicle adoption. With 30 lakh EVs registered and a 45% increase in EV sales in 2023-24, he praised the growing shift towards electric vehicles.
On road safety, Gadkari acknowledged the high accident rates and fatalities, taking responsibility for errors made by road engineers. He stated that his ministry has invested Rs 40,000 crore to address safety issues and reduce blind spots. He urged adherence to traffic rules and encouraged automobile companies to establish driving schools to improve driver training.
Addressing environmental concerns, Gadkari discussed the transport sector's contribution to air pollution and the need for cleaner fuels. He noted that diesel-powered personal vehicles have decreased from 56% in 2014 to 18% currently and called for continued efforts to reduce fossil fuel dependence and advance alternative technologies.
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