The government will not ban gasoline and diesel vehicles: Nitin Gadkari
NEW DELHI: gasoline and diesel vehicles will not be banned in the country, he said Thursday on Thursday, as the automobile industry is at a crossroads with the internal combustion engine (ICE) and the rapid transition to electric vehicles .
Nitin Gadkari, Union minister for road and highway transportation, said: The government has no intention of banning the production or stopping existing gasoline and diesel vehicles. People had apprehensions about buying ICE vehicles and we are not going to take such a step.
The experts of the automotive industry informed Gadkari about the increase in vehicle prices due to the BSVI compatible engine. The industry has sought a relaxation of GST in vehicles due to the additional cost incurred by the transition from BSIV to an engine that meets BSVI. I would surely convey this to finance minister Nirmala Sitharaman and the government may consider reducing GST temporarily.
However, the minister highlighted three main challenges: the importation of crude oil, pollution and traffic accidents, which the government currently faces with the automobile sector.
First, we are aware of how the importation of crude oil is affecting the economy. Imports have crossed Rs 7 lakh crore. Pollution is our second great challenge, which is affecting everyone. The automobile industry is not the reason behind the pollution. Pollution reduction is of national and social interest. Third, we wanted to address the issue of traffic accidents. Annually, there are more than five lakh traffic accidents throughout the country. To ensure greater road safety, we introduced the Motor Vehicles Act of 2019, Gadkari said at the 59th annual Siam convention (Society of Indian Automobile Manufacturers).
We are ready to receive input and suggestions from interested parties and the finance minister, Nirmala Sitharama, is constantly trying to solve the problems of a slowdown in the automotive industry. The government has taken steps to ensure greater liquidity in the system, Gadkari added.
Sitharaman announced a series of measures on August 23, which include lowering car loans, lifting the ban on buying new vehicles to replace old government vehicles, deferring single registration fees until June 2020, an additional 15% depreciation in all vehicles and the operation of BSIV vehicles for your entire registration period.