India’s largest commercial vehicle manufacturer Tata Motors has entered into a Memorandum of Understanding (MoU) 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 centre will have the capacity to recycle up to 36,000 vehicles a year. The MoU was signed at the Investor Summit in Gandhinagar, Gujarat, in the presence of Nitin Gadkari, Minister of Road Transport and Highways, Government of India, Vijay Rupani, Chief Minister of Gujarat and other delegates from central and Gujarat governments.
Ports and Transport Department will facilitate the necessary approvals as per the rules and regulations of the 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 centre in association with a partner.
Girish Wagh, Executive Director & President – Commercial Vehicle Business Unit, Tata Motors, said 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,” he added.