Tata Motors and Gujarat Government to setup vehicle scrapping facility in Ahmedabad

Kenneth John Published: August 14, 2021, 07:41 AM IST

As part of its Investment Promotion Activity, Tata Motors has signed a Memorandum of Understanding (MoU) with the Gujarat government's Ports and Transport Department to support the establishment of a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad for end-of-life passenger and commercial vehicles.

Scrappage

The new scrappage facility will be able to recycle up to 36,000 automobiles each year. In the presence of the Minister of Transport and Highways, Government of India, Nitin Gadkari, the Chief Minister of Gujarat, Vijay Rupani, and other representatives from the Governments of Gujarat and India, the MoU was signed at the Investor Summit in Gandhinagar, Gujarat.

The Gujarat State Government's laws and regulations, as well as the draught vehicle scrappage policy issued by the Ministry of Transport and Highways (MoRTH), would be used to help facilitate the required permissions for the RVSF's establishment. It will meet the goals of all stakeholders by providing benefits such as lower scrap and crude oil import bills, job opportunities for MSMEs, the potential for increased new vehicle sales for OEMs, lower vehicle ownership costs, safer and cleaner vehicles for consumers, and a sustainable environment for all. The scrapping centre will be built up by Tata Motors in collaboration with a partner.

Girish Wagh, Executive Director & President of commercial vehicle business unit, Tata Motors, said, "We are delighted to support this initiative through a partner for the setting up of the scrapping facility (RVSF) in Ahmedabad. It is indeed a historic step for Tata Motors as the company announces its participation in the vehicle scrapping space. Appropriate scrapping of end-of-life vehicles will have sustained benefits for the ecosystem stakeholders and the environment alike. The scrappage policy by the MoRTH is a welcome move and a step in the right direction to promote safer and cleaner vehicles in India, and it is a crucial step in building a circular economy. As a responsible corporate, Tata Motors is committed to a sustainable future and look forward to support this initiative through this association with the Government of Gujarat."

Also Read:

National Automobile Scrappage Policy: Everything you need to know

Bin it: The ins and outs of India's scrappage policy

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