Tata Motors: Tata Motors has launched its first Registered Vehicle Scrapping Facility (RVSF) near Jaipur, as part of its plan to establish a dozen such facilities across India. Named Re.Wi.Re – Recycle with Respect – the company plans to set up at least one vehicle scrappage unit in each state before expanding further. The new facility, run by Ganganagar Vaahan Udyog Ltd, is situated on five acres of land along the NH-8 Jaipur-Ajmer highway and is capable of handling more than 15,000 vehicles per year. It is designed to scrap passenger and commercial vehicles of all brands that have reached the end of their useful lives.
Nitin Gadkari virtually inaugurated the facility
Union Minister of Road Transport and Highways, Nitin Gadkari, virtually inaugurated the facility and noted that India’s reliance on scrap imports will decrease in the coming years as recycling increases. He said that having 50 to 60 such centres will significantly reduce India’s steel scrappage, and the industry could become a hub for vehicle scrappage in the South Asian region. Gadkari also highlighted that older vehicles pollute 10 to 12 times more than newer ones, and India holds over 2 crore old vehicles nearing the end of their lives.
Decentralised facilities will benefit customers
Tata Motors Executive Director, Girish Wagh, emphasised that the aim is to maximise the value from scrap for future use and minimise waste. He said that the decentralised facilities will benefit customers, create employment, and address the need for scrapping vehicles in every part of the country in an eco-friendly manner.
Discounts of up to 25% on road tax
According to the Indian government, there are 51 lakh light motor vehicles older than 20 years, 34 lakh older than 15 years, and 17 lakh Medium and Heavy Commercial Vehicles (M&HCVs) without a valid fitness certificate. The government estimates that the vehicle scrappage ecosystem will attract additional investments of around Rs 10,000 crore and 35,000 job opportunities. The vehicle scrappage policy announced by the government in early 2021 offers vehicle owners approximately 4-6% discount on ex-showroom prices on the purchase of a new vehicle. In addition, they can receive discounts of up to 25% on road tax for personal vehicles and 15% for commercial vehicles.
Clears the way for greener driving
Vehicle scrappage eliminates the use of old, polluting vehicles on the road. This policy, adopted by several developed markets, is typically required by a government to accelerate the replacement of old, polluting vehicles with new ones. The strategy has the added benefit of stimulating the domestic automobile and automotive industry while removing inefficient, polluting vehicles from the road, which clears the way for greener driving and cleaner air, according to industry observers.
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