Tata Motors Signs MoU With Maharashtra Govt To Set Up Vehicle Scrapping Facility

Automotive giant Tata Motors on Friday (17 December) signed a memorandum of understanding (MoU) with the Maharashtra government to support setting up of a vehcile scrapping facility in the state.

The MoU for the Registered Vehicle Scrapping Facility (RVSF) was signed at the 'Conference on Investment Opportunities in Highway, Transport and Logistics' in Mumbai in presence of Union Minister of Road Transport and Highways Nitin Gadkari.

The proposed scrappage centre will have the capacity of recycling up to 35,000 vehicles a year for end-of-life passenger and commercial vehicles, the company said in a statement.

Maharashtra's Industries, Energy and Labour Department will support in facilitating 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 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," the statement said.

Tata Motors will set up the scrapping centre in association with a partner, it added.

Earlier, the company had signed a MoU with Gujarat government for setting up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad.

The company said that it will continue to work with other government bodies to more initiatives to support the vehicle scrappage policy.

Commenting on the partnership, Girish Wagh, executive director, Tata Motors, said, "We are happy to partner with the Government of Maharashtra to support in setting up a scrapping facility in Maharashtra. Besides the well-known benefits that appropriate vehicle scrapping offers – boosting the setup of a circular economy, this initiative will also help in reiterating our commitment to strengthen our leadership in sustainable mobility space. We are proud to partner with the policymakers on this initiative of setting up scrapping facilities across the country. It is the beginning of a new chapter and a step in the right direction for India’s transportation sector."