Will diesel vehicles be banned in India? Why does Nitin Gadkari want 10% additional GST on diesel vehicles?

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Nitin Gadkari: Gadkari said that I have already prepared a draft of a letter and I am meeting the Finance Minister this evening.

I will increase the tax so much that it will become difficult to sell diesel vehicles. At the same time, after this statement of Gadkari, the shares of automobile companies have declined.

Nitin Gadkari: In India, the government is heavily promoting cars and vehicles running on electric, hydrogen and ethanol. However, first electric vehicles are running in the country and now cars running on hydrogen and ethanol fuel have also arrived in the Indian market.

In such a situation, Union Road Transport and Highways Minister Nitin Gadkari has demanded major action from Finance Minister Nirmala Sitharaman to increase the use of cars running on hydrogen and ethanol fuel in the country as soon as possible. Gadkari said that I have requested Finance Minister Nirmala Sitharaman to impose 10 percent additional GST on diesel engine vehicles to curb sales.

As soon as Gadkari’s statement came out, shares of automobile companies took a dive in the stock market. In such a situation, if the Finance Ministry and the Union Transport Minister agree on this idea, then diesel vehicles will become very expensive in the country and the possibility is also gaining strength that there may be a ban on the sale of diesel vehicles in the country.

Will meet Finance Minister in the evening on additional GST

While attending the 63rd Society of Indian Automobile Manufacturers annual conference in New Delhi on Tuesday, Gadkari said, I would like to request the Finance Minister to impose additional 10 per cent GST on diesel engines/vehicles to phase out diesel vehicles. I am staying. This is the only way. Gadkari also said that I have already drafted a letter and I am meeting the Finance Minister this evening. I will increase the tax so much that it will become difficult to sell diesel vehicles.

Gadkari warned vehicle manufacturing companies

The minister has warned the automobile companies that the country’s automobile companies should immediately focus on reducing the production of diesel vehicles, otherwise the government will increase the tax on it so much that it will become difficult for the companies to sell diesel vehicles. The minister said that companies should reduce the production of diesel vehicles otherwise I will increase the tax.

Now this fuel will have to be given top priority

Emphasizing on increasing focus on biofuels and alternative fuels, Gadkari said that India will now have to give top priority to biofuels and alternative fuels. The country has joined the global biofuels alliance during the G-20 summit. He said that India imports 89 percent crude oil, which is a big challenge. Therefore, PM Modi has given top priority to alternative and biofuels.

Union Minister asked questions to the auto industry

Nitin Gadkari also asked the auto industry why buses and trucks cannot run on ethanol? He lauded the industry for increasing its focus on alternative fuels and EVs.

Automobile company shares fell

After this statement of Gadkari, there was a decline in the shares of listed automobile companies in the stock market on Tuesday. During trading, Tata Motors shares were trading 2.62 percent down at Rs 618.05 on BSE. Shares of M&M were trading at Rs 1,536.55, down 2.88 per cent. At the same time, shares of Swaraj Engines and Ashok Leyland fell by 3 percent. Ashok Leyland is trading at Rs 178.30 and Swaraj Engines at Rs 2071.45.

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