Tata to set up vehicle scrapping facility in Maharashtra

Tata Motors has signed an MoU (memorandum of understanding) with the Government of Maharashtra, for setting up a registered vehicle scrapping facility (RVSF) in the state. The proposed scrappage centre will have a capacity of recycling up to 35,000 end-of-life passenger and commercial vehicles a year.

• Tata to set up Maharashtra scrapping centre, in association with a partner
• Plant to be capable of recycling 35,000 vehicles annually

The MoU was recently signed at the Conference on Investment Opportunities in Highway, Transport and Logistics in Mumbai, in the presence of the Union Minister of Road Transport and Highways, Nitin Gadkari. Maharashtra government’s Industries, Energy and Labour Department will facilitate the necessary approvals.

Tata Motors will set up the scrapping centre in association with a partner. Scrapping vehicles responsibly is expected to have numerous benefits, such as lowering import bill for scrap and crude oil, creating job opportunities for MSMEs, leading to a possible uptick in new vehicle sales for carmakers, encouraging safer and cleaner vehicles for consumers and creating a sustainable environment.

Commenting on signing the MoU with the Maharashtra government, Girish Wagh, executive director, Tata Motors, said, “Besides the well-known benefits that appropriate vehicle scrapping offers – boosting the set-up 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.”

Vehicle scrapping centres in India

Earlier in the year, Tata Motors signed an MoU with the Gujarat government for setting up a scrapping facility in Ahmedabad.

Maruti Suzuki and Toyota Tsusho Group inaugurated their vehicle dismantling and recycling centre in Noida, Uttar Pradesh in November. The Maruti-Toyota combine is just the second company, after Mahindra Cero, to have an operational scrapping set-up in the country.

As things stand, India is home to six of the top 10 polluting cities globally and is among the top five polluting countries. With vehicles contributing nearly 15-30 percent to air pollution (PM2.5 and PM10 levels), especially in cities such as Mumbai and Delhi, setting up vehicle scrapping centres is a crucial step towards taking old and polluting vehicles off our roads.