Tata Motors signs MoU with Gujarat to set up vehicle scrapping unit

16 Aug 2021 CW Team

As a part of the Investment Promotion Activity, Tata Motors signed a Memorandum of Understanding (MoU) with the government of Gujarat to set up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad for passengers and commercial vehicles.

The scrapping unit would be able to recycle up to 36,000 vehicles every year. It will be compliant with the latest scrappage policy of the Ministry of Road Transport and Highways (MoRTH) and vehicle dismantling policy of the Automotive Research Association of India (ARAI) and Central Pollution Control Board.

It was signed at the Investors Summit in Gandhinagar in the presence of the MoRTH, Nitin Gadkari, Chief Minister of Gujarat, Vijay Rupani, and other government officials of Gujarat and the Government of India.

According to the rules of the Gujarat government and the draft vehicle scrappage policy released by MoRTH, the Ports and Transport Department will help in facilitating the necessary approvals for setting up RVSF.

It will address the intent of all the stakeholders with the benefits, including low import bill for scrape and crude oil, employment opportunities for Micro, Small, and Medium Enterprises (MSMEs), possibility of upside in the sale of new vehicles for Original Equipment Manufacturers (OEMs), low-cost operation for vehicle owners, safe and clean vehicles for buyers, and sustainable environment.

Executive and Director of Tata Motors, Girish Wagh, said that the scrapping unit is a historic step for Tata Motors in the vehicle scrapping space. It will provide appropriate scrapping of end-of-life vehicles, which have sustainable benefits for the ecosystem stakeholders. The policy by MoRTH will promote safer and cleaner vehicles, which is a crucial step for economic growth.

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Also read: Tata Motors simultaneously inaugurates eight new showrooms in Ahmedabad

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