Tata Motors has signed a Memorandum of Understanding (MoU) with the Government of Gujarat, through the Ports and Transport Department, to set up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad. The tie-up is part of an Investment Promotion Activity and was made at the Investor Summit in Gujarat. Prime Minister Narendra Modi launched the voluntary vehicle scrappage policy at the same event earlier today.
Also Read: Prime Minister Modi Launches The Voluntary Automotive Scrappage Policy In India
Commenting on the partnership, 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."
Tata Motors will set up the scrapping facility in association with a partner, the company. Meanwhile, Ports and Transport Department will support in facilitating the necessary approvals as per the rules and regulations of the state government of Gujarat under the draft vehicle scrappage policy.
Also Read: Vehicle Scrappage Policy: All You Need To Know
(L-R) Manoj Kumar Das, IAS, Additional Chief Secretary - Port and Transport Dept, Govt of Gujarat, Sushant Naik, Global Head - Government & Public Affairs, Tata Motors at the MoU signing ceremony
The policy aims to help lower the import bill for scrap and crude oil, create job opportunities for small businesses, as well as improve new vehicle sales for OEMs. The centre also aims to promote the adoption of more fuel-efficient and safer vehicles with the new policy in place.
Under the new scrappage policy, the first vehicles to be scrapped will be government vehicles older than 15 years old with the process to begin in 2022. Heavy trucks will be scrapped next from 2023 onwards. Private vehicles will be scrapped from 2024 onwards. Commercial vehicles that are over 15 years old will be eligible to be scrapped, while and personal vehicles over the age of 20 years will become eligible for scrapping.
