Road construction worth Rs 15 lakh crore in the next 2 years automatic scrapping policy soon

NEW DELHI: The government plans to build roads worth Rs 15 lakh crore in the next two years, Union Minister Nitin Gadkari said on Thursday.

The minister for road transport, highways and MSMEs also said that the policy of scrapping cars will probably end soon.

In a video conference with members of the SIAM (Society of Indian Automobile Manufacturers) Institute on the impact of COVID-19 on the automotive sector, the minister suggested focusing on improving liquidity in business, as ups and downs are common.

He stressed that one must plan for the bad times while working for growth, adding that the industry should focus more on innovation, technology and research capacity to be competitive in the global market.

“I have set a goal of building roads worth Rs 15 lakh crore in the next two years,” said Gadkari, adding that his ministry is working overtime to resolve all arbitration cases with the dealers.

The minister reported that he has ordered ministry officials to quickly end the car scrapping policy and said it will go a long way in reducing costs.

He also suggested exploring cheaper credits, including foreign capital, to improve liquidity in the auto manufacturing sector.

On the issue of BS-IV vehicles, he said the government is bound by the Supreme Court’s verdict on it. However, at the suggestion of the industry, he will examine the matter again.

Regarding the relaxations sought in other regulations, Gadkari stated that he will strive to provide relief whenever possible where the industry is seeking an extension of time.

Gadkari answered the representatives’ questions and secured all possible government aid. He reported that he would address the issues at the appropriate level in government and other departments.

The videoconference was also attended by the Minister of State for Highway and Highway Transportation VK Singh and the Secretary for Highway and Highway Transportation Giridhar Aramane, among other senior officials.

During this interaction, members expressed their concern about the various challenges facing the industry in the midst of the COVID-19 pandemic along with some suggestions and requested government support to keep the sector afloat.