New Delhi: Tata Motors on Friday entered into a Memorandum of Understanding (MoU) with the Government of Gujarat to support setting up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad for end-of-life passenger and commercial vehicles.
According to the automaker, the scrappage centre, to be set up in association with a partner, will have the capacity to recycle up to 36,000 vehicles a year.
The MoU is a part of the Investment Promotion Activity and comes through the Ports and Transport Department of the Gujarat government.
The Department will facilitate the necessary approvals as per the rules and regulations of the State Government and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for setting up RVSF, Tata Motors said.
“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,” the automaker added.
Girish Wagh, executive director and president – commercial vehicle business unit, Tata Motors, said, “We are delighted to support this initiative through a partner by setting up a registered 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 supporting this initiative through this association with the Government of Gujarat,” Wagh said.
The MoU was signed at the Investor Summit in Gandhinagar, Gujarat, which was organized by the Ministry of Road Transport and Highways (MoRTH) and the Gujarat government.
Prime Minister Narendra Modi launched the Vehicle Scrapping Policy during the ‘Investors Summit for setting up Vehicle Scrapping Infrastructure’ in Gujarat.
The policy is supposed to bring in investments of around INR 10,000 crore to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country.
A single window clearance portal is being developed where the applications for ATS and RVSF will be catered through a single portal within 60 days.
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Vehicles will not just be scrapped by their age, but also if they are found to be unfit in automated testing, the PM said.