Tata Motors Signs MoU With Maharashtra For Vehicle Scrapping

The country’s largest vehicle manufacturer Tata Motors has just signed a Memorandum of Understanding (MoU) with the Government of Maharastra last Friday. This onset of a new partnership between the two organisations will sanction the construction of a Registered Vehicle Scrapping Facility (RVSF). This facility has also received the green lights from the Industries, Energy, and Labour Departments of the Maharashtra Government.

The memorandum was signed at the Conference on Investment Opportunities in Highway, Transport and Logistics held in Mumbai, Maharashtra. Along with the presence of the Honorable Minister of Road Transport and Highways, Mr Nitin Gadkari and other delegates, the agreement will facilitate the establishment of a 35,000 passenger/commercial vehicles per year capacity recycling and scrapping facility.

The Departments of Industries, Energy, and Labour will exhibit their support for the facility by providing the necessary approvals as per the rules and regulations of the state government. They will also make sure that the draft for vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for setting up of the RVSF is also followed.

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Tata Motors in August of this year has also signed a similar agreement with the Government of Gujrat to set up a vehicle scrappage facility in Ahemdabad. The memorandum was signed between the Ports and Transport department of the Gujrat Government. Additionally, the expected capacity for the RVSP in Ahemdabad will be around 36,000 vehicles per year, which will include commercial as well as passenger vehicles.

“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,” said Girish Wagh, Executive Director, Tata Motors while mentioning the collaboration.

Earlier in August, the government initiated the vehicle scrapping policy, which they expect can fork in investments of around Rs 10,000 crores. The Road Transport and Highways Minister Nitin Gadkari stated that this policy could help in reducing the raw materials price by nearly 40 percent. Moreover, it will also help in the creation of a low import bill for scrap and crude oil and job opportunities for MSMEs.

The scrappage policy mentions that the vehicles will now have to pass a fitness check in order to get re-registered. While the government commercial vehicles that exceed the 15 years old mark and private vehicles which are over 20 years old will be scrapped.

In addition to Tata Motors, Mahindra has also taken an initiative towards the scrappage policy. Mahindra has also signed an MoU with Mahindra MSTC Recycling Pvt Ltd (MMRPL) so that it can offer its customers a first-of-its-kind, end-to-end solution for the scrapping of vehicles. The current business of MMRPL is to acquire used and near end-of-life vehicles that they dismantle and scrap.

“Our agreement with MMRPL is a step towards delivering customer delight through a convenient, one-stop solution for customers who wish to scrap their old vehicle. While the scrappage policy will take effect in some time, we are ready to help the customers who intend to discard their vehicles.” said, Veejay Ram Nakra, CEO – automotive division, Mahindra and Mahindra while mentioning this partnership.

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