Union Minister for Road Transport & Highways, Mr. Nitin Gadkari encourages carmakers to setup scrapping centres, announces testing agency in Pune

Union Minister for Road Transport & Highways, Mr. Nitin Gadkari, highlighted that India has 63 operational scrapping centres, with 60 under construction and 40 in the pipeline, which is still insufficient for the country’s automobile population. Speaking at a Society of Indian Automobile Manufacturers (SIAM) convention, he emphasized the massive potential of the scrapping industry, predicting a sales boost of 18-20% in India and the creation of 35,000 jobs. He also announced the establishment of a new testing agency in Pune, costing US$ 53.6 million (Rs. 450 crore), which will be operational in 3 months, further supporting the automobile industry. He underscored the importance of world-class testing agencies, citing Bharat-NCAP’s role in boosting exports, and urged manufacturers to produce high-quality vehicles and explore alternative fuel options to capture the global market. He noted that the CNG vehicle market stands at US$ 95.29 billion (Rs. 8 lakh crore), with a target of 20,000 CNG stations by 2030, up from 6,000 today.

He also outlined the government’s plans to promote a gas economy and develop a methanol economy to reduce LPG costs and encourage the use of LNG in trucks, which could save up to US$ 14,293.71 (Rs. 12 lakh) per year. He stressed the need for futuristic planning, particularly in hydrogen technology, highlighting India’s potential to produce 5 million metric tonnes of hydrogen annually, which could generate 125 GW of energy and create 6 lakh jobs with an investment of US$ 95.29 billion (Rs. 8 lakh crore). He also emphasized the role of the automobile industry in India’s US$ 5 trillion economy journey, stating that the sector contributes 35% to manufacturing, creates 4.5 crore jobs, and generates US$ 41.69 billion (Rs. 3.5 lakh crore) in GST. Addressing road safety, he noted that India reported 5 lakh accidents and 1.68 lakh deaths last year and appealed for stricter adherence to traffic rules. Additionally, he highlighted the government's efforts in boosting electric vehicle (EV) sales, with EVs now accounting for 56% of all two-wheelers and the Indian EV market projected to reach US$ 238.24 billion (Rs. 20 lakh crore) by 2030.

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