Transport and highways minister Nitin Gadkari on Thursday pitched for discounts of up to Rs 1 lakh for car buyers who opted for scrapping their old vehicles, while promising to seek a GST reduction for these consumers.

Gadkari, speaking at a conference of auto industry body Siam, said that the government wants to tackle the growing pollution across cities, and one of the ways to achieve this is to move out older, polluting vehicles through the route of scrappage.

He said that over 1.2 crore older and polluting vehicles are eligible for scrappage due to their age, and if they are moved out, they will also become a big source of essential raw materials such as copper, aluminium and plastics, which will be retrieved through the recycling process.

To encourage people to scrap vehicles, Gadkari said that his ministry is proposing various benefits, which would include lower GST rates and discounts. “The auto industry's business will grow by 25-30% due to scrappage. You can keep your profits… But I request you that, if possible, give a discount of Rs 50,000 to Rs 1 lakh to these people. You can give a lower discount to those moving out smaller vehicles. Your cooperation here will be important.”