Tata Motors, India’s largest commercial vehicle manufacturer, on Friday signed a memorandum of understanding (MoU) with the Maharashtra government to support setting up a registered vehicle scrapping facility.

The proposed scrappage centre in Maharashtra will have the capacity to recycle up to 35,000 vehicles a year for end-of-life passenger and commercial vehicles.

This registered vehicle scrapping facility is one of several that will be set up with the help of partners under a franchise model.

The MoU, which was signed through the Industries, Energy and Labour Department, was concluded at the Conference on Investment Opportunities in Highway, Transport and Logistics in Mumbai, in the presence of Minister of Road Transport and Highways, Nitin Gadkari, and other delegates.

Also read: Plan to suggest tax rebate under vehicle scrappage policy: Nitin Gadkari

The Industries, Energy and Labour Department will help facilitate the necessary approvals as per the rules and regulations of the State and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH).

Benefits provided

The MoU intends to address the intent of all stakeholders with benefits such as low import bill for scrap and crude oil, job opportunities for the 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.

Tata Motors had earlier signed a MoU with the Gujarat government for setting up a registered vehicle scrapping facility in Ahmedabad.

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