Union Minister Nitin Gadkari (PTI Photo / Atul Yadav)
Finance Minister Nirmala Sitharaman has announced to launch a Voluntary Scrappage Policy in the budget.
Gadkari said that recycling will reduce the cost of the vehicle part. The search for an alternative to hydrogen fuel continues. India has the potential to become an electric vehicle manufacturing hub.
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Impact of reducing import duty of steel will be seenHe said that the impact of decreasing import duty of steel will be seen soon. Detailed information on this will come in the next 15 days, this policy will benefit the auto sector, will also help in reducing pollution and the rising prices of steel will be curbed. Changes in duty structure will reduce steel prices. He further said that the allocation of MSME sector has doubled.
40 km per day road construction will be targeted
The Union Minister further said that the target of 40 km per day road construction will be met. Infrastructure has been kept in priority in the budget. MSME budget has been doubled. No politics is being done in road construction. All states have been taken care of in this.
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Long awaited scraping policy
Significantly, the wait for a voluntary scraping policy for the auto sector was long overdue. Now private vehicles 20 and commercial vehicles will not be able to hit the roads after 15 years. Following this announcement by the Finance Minister, shares of Mahindra & Mahindra, Maruti, Bajaj Auto and Ashok Leyland saw a rise of 2%.