Tata Motors signs MoU with Gujarat govt over new vehicle scrappage policy

Tata Motors has signed a Memorandum of Understanding (MoU), as a part of the Investment Promotion Activity, with the Government of Gujarat.

Tata Motors has signed a Memorandum of Understanding (MoU), as a part of the Investment Promotion Activity, with the Government of Gujarat. The company will endorse the idea of establishing a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles.

The scrappage centre will recycle 36,000 vehicles every year. The MoU happened at the Investor Summit in Gandhinagar, Gujarat.

Ports and Transport Department will help to incorporate necessary approvals according to the rules and regulations stated by the State Government of Gujarat and the draft vehicle scrappage policy issued by the Ministry of Road Transport and Highways (MoRTH) for implementing the RVSF.

The new vehicle scrapping policy will enable major benefits like less import bill for scrap and crude oil, job opportunities for MSMEs, the chances of new vehicle sales for OEMs, low operational expenses cost for vehicle owners, to promote a sustainable environment.

Commenting regarding the partnership, Girish Wagh, Executive Director & President at Commercial Vehicle Business Unit, Tata Motors, added, “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.

Wagh further asserted, “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.”

Source Mint
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