Tata Motors to help Maharashtra government to set up vehicle scrapping facility
Tata Motors has joined hands with the government in Maharashtra to set up its first vehicle scrapping centre in the state. Tata Motors signed a Memorandum of Understanding (MoU) with the state government today. The scrappage centre, which Tata Motors will set up with the help of a partner, will have the capacity to recycle up to 35,000 vehicles each year for end-of-life passenger and commercial vehicles.
The deal was signed today in presence of Nitin Gadkari, Minister of Road Transport and Highways, during a conference. According to the deal, Tata Motors will get help from the Industries, Energy and Labour departments to get necessary approvals.
Girish Wagh, Executive Director at 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."
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Tata Motors had earlier signed a deal with the the Gujarat government to set up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad. It has a capacity to recycle up to 36,000 vehicles a year. The carmaker had earlier announced that its has tied up with a European expert to help the company with a model scrapping centre.
The national vehicle scrappage policy is aimed to phase out old and unfit vehicles. It was launched by Prime Minister Narendra Modi in August this year and will come into effect from April next year. The policy will make it mandatory for personal vehicles to undergo fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.