North India Statesman
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Union Minister Nitin Gadkari on Friday gave a big message to the automobile industry – if all 97 lakh waste and pollution -causing vehicles are scraped, India could benefit from Rs 40,000 crore as GST. Speaking at the ACMA annual session 2025, Gadkari said that this major cleaning campaign will not only increase government revenue, but will also increase India’s efforts to become the world’s number one automobile industry in five years.
So far, the progress of scraping policy has been modest. By August 2025, only 3 lakh vehicles have been scraped, of which 1.41 lakh were government vehicles. On an average 16,830 vehicles are being scraped every month. The private sector has invested Rs 2,700 crore in the construction of this ecosystem.
India’s vehicle scraping policy, also known as a voluntary vehicle modernization program (V-VMP), has been designed to remove old, unsafe and polluting vehicles in an environmentally friendly manner.
Auto industry should be exempted on scrap: Nitin Gadkari
According to a PTI report, Gadkari urged the automobile manufacturers to encourage scrapping by giving a discount of at least 5 percent to customers who submit scrappage certificates while purchasing a new vehicle.
He said, “This is not donation because it will increase demand.” He further stated that the cycle of scraping and replacement could keep the industry demand strong.
Why is scraping necessary?
According to Gadkari, proper implementation of the scrapage policy may reduce the cost of automobile components by up to 25 percent, as recycled steel, aluminum and other material return to the supply chain.
Additionally, removing 9.7 million unsuitable vehicles in a phased manner will reduce emissions, reduce fuel consumption, and improve road safety standards.
