Tata Motors has entered into a Memorandum of Understanding (MoU), as a part of the Investment Promotion Activity, with the Government of Gujarat, through the Ports and Transport Department, to support setting up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles. The scrappage center will have the capacity of recycling up to 36,000 vehicles a year. The MoU was signed at the Investor Summit in Gandhinagar, Gujarat, in presence of the Hon'ble Minister of Road Transport and Highways, Government of India, Mr. Nitin Gadkari, Hon'ble Chief Minister of Gujarat, Mr. Vijay Rupani, and other delegates from the Government of Gujarat and Government of India.
The new facility will be compliant with the latest scrappage policy of the MoRTH, and vehicle dismantling guidelines of ARAI and Central Pollution Control Board
The facility will be deployed for both passenger and commercial vehicles
Scrappage centre will have the capacity of recycling up to 36,000 vehicles a year
Ports and Transport Department will support in facilitating the necessary approvals as per the rules and regulations of the State Government of Gujarat and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for setting up of the RVSF. It will address the intent of all stakeholders with benefits such as low import bill for scrap and crude oil, job opportunities for MSMEs, the possibility of upside in new vehicle sales for OEMs, low operation cost for vehicle owners, safer and cleaner vehicles for consumers and a sustainable environment for all. Tata Motors will set up the scrapping center in association with a partner.
Commenting on the partnership, Mr. Girish Wagh, Executive Director & President – 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.”