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Tata Motors to set up a vehicle scrapping facility in Ahmedabad
Centre will have the capacity of recycling up to 36,000 passenger and commercial vehicles a year
Gandhinagar: Tata Motors Ltd has inked an MoU (Memorandum of Understanding) with the state’s ports and transport department to set up a registered vehicle scrapping facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles.
The centre will have the capacity of recycling up to 36,000 passenger and commercial vehicles a year, in compliance with the latest scrappage policy of the Ministry of Road Transport and Highways (MoRTH), and vehicle dismantling guidelines of ARAI and the Central Pollution Control Board.
The MoU was signed at the Investor Summit in Gandhinagar, in the presence of the Union Minister of Road Transport and Highways Nitin Gadkari, Chief Minister Vijay Rupani and other officials.
Commenting on the partnership, Girish Wagh, Executive Director & President of Tata Motors’ Commercial Vehicle Business Unit said: “We are delighted to support this initiative, which is 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.”
According to the MoU, the state will facilitate the necessary approvals and 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. Meanwhile, Tata Motors will set up the scrapping centre in association with a partner.