News
5
Sep
2020
Scrappage Policy to be out soon, will take GST demand to FM, PM: Javadekar
Union Minister Prakash Javadekar said that the scrappage policy is ready and will be announced soon. He further assured the industry to discuss the suggestion of temporary GST cut with FM and PM.
New Delhi: We are ready with the proposal for Scrappage Policy. All the stakeholders have also given their inputs and we will announce it soon, said Prakash Javadekar, Union Minister of Heavy Industries & Public Enterprises, Government of India.
“Soon is very soon,” he reiterated, while speaking at the 60th Annual Convention of SIAM.
Discussing the auto slowdown, Javadekar said, “Every sector including the government has been impacted all over the world. Our revenues have also nosedived. But this year monsoon is very good and the rural economy is on track. And since the rural base is slowly changing, demand for four wheelers will also rise along with two wheelers and tractors."
“Soon is very soon,” he reiterated, while speaking at the 60th Annual Convention of SIAM.
Discussing the auto slowdown, Javadekar said, “Every sector including the government has been impacted all over the world. Our revenues have also nosedived. But this year monsoon is very good and the rural economy is on track. And since the rural base is slowly changing, demand for four wheelers will also rise along with two wheelers and tractors."
“The problem however, arises in the urban sector,” he added.
Further clarifying the government’s stand on the GST reduction for the auto sector, the Union Minister stated, “Government is open to ideas and making dialogue; there is always a way forward. I will certainly discuss the need for GST reduction in the auto sector with the FM and PM as the industry is asking for GST reduction for a certain period of time and not permanently.”
When asked if the GST will be announced across the segments, he noted, “It should come in the sequence of two wheelers, followed by three wheelers and public transport and then four wheelers.”
Stressing on the government’s push on infrastructure development with INR 100 lakh-crore investment, Javadekar also mentioned that the auto sector has a lot of scope for exports.
Prakash Javadekar also congratulated the auto industry for migrating to BS-VI norms within three years and four years in advance. “30 years ago, we were not a major player but today we are an auto major with progress in all categories,” he said.
Auto Financing
Talking about vehicle financing, Uday Kotak, MD & CEO, Kotak Mahindra Bank said that money is available and banks are ready to lend to the vehicles. The challenge is not financing vehicles but getting supply and demand.
Further clarifying the government’s stand on the GST reduction for the auto sector, the Union Minister stated, “Government is open to ideas and making dialogue; there is always a way forward. I will certainly discuss the need for GST reduction in the auto sector with the FM and PM as the industry is asking for GST reduction for a certain period of time and not permanently.”
When asked if the GST will be announced across the segments, he noted, “It should come in the sequence of two wheelers, followed by three wheelers and public transport and then four wheelers.”
Stressing on the government’s push on infrastructure development with INR 100 lakh-crore investment, Javadekar also mentioned that the auto sector has a lot of scope for exports.
Prakash Javadekar also congratulated the auto industry for migrating to BS-VI norms within three years and four years in advance. “30 years ago, we were not a major player but today we are an auto major with progress in all categories,” he said.
Auto Financing
Talking about vehicle financing, Uday Kotak, MD & CEO, Kotak Mahindra Bank said that money is available and banks are ready to lend to the vehicles. The challenge is not financing vehicles but getting supply and demand.
“We need to get the whole chain working together. On my part, I can assure that the banks are ready, willing and eager to lend money. We just need consumers with a reasonable credit history to buy the vehicles.”