On May 7, 2020, Union Minister for Road Transport & Highways (MoRTH) and MSMEs (Micro, Small & Medium Enterprises) Shri Nitin Gadkari held meeting via video conferencing with the members of SIAM (Society of Indian Automobile Manufacturers) Institute on impact of COVID-19 on auto sector. It was attended by Minister of State(MoS) Gen (Retd) Vijay Kumar Singh, Secretary RTH Shri Giridhar Aramane, and senior officers of MoRTH.
- The objective of the meet was to discuss challenges being faced by the auto industry affected by COVID-19 pandemic along with few suggestions and requested support from the government to keep the smooth working of the sector.
Road Construction target set for 2 years’ worthRs 15 lakh cr
During the meet, Nitin Gadkari has set a target of constructing roads worth Rs 15 lakh crore in the next two years.Currently, MoRTH is working overtime to clear all arbitration cases with concessionaires.
Suggestions provided by Minister to enhance auto sector
-To focus on enhancing liquidity in business by exploring cheaper credits including foreign capital.
-Plan for bad times while working for growth.
-More focus required towards innovation, technology and research skill to become competitive in the global market.
Key Points:
-During the meeting it was also informed that MoRTH officials are finalizing the scrappage policy for old vehicles as early as possible that will help in cost reduction.
-It should be noted that International Energy Agency (IEA) recently released a report”Global Energy Review 2020” which stated a 50% decline in car sales in India. Read full details about IEA here: India’s energy demand falls by 30% due to covid-19 lockdown: IEA-Global Energy Review 2020
About Ministry of MSME:
Minister of State– Pratap Chandra Sarangi
About SIAM:
President– Rajan Wadhera
Headquarter– New Delhi
