One of India’s largest commercial vehicle manufacturers, Tata Motor, has announced its latest partnership with the Government of Maharashtra. By signing the Memorandum of Understanding (MoU), the two establishments will set up a Registered Vehicle Scrapping Facility (RVSF). Located in Maharashtra, the RVSF has been agreed upon by the Industries, Energy, and Labour Departments of the Maharashtra Government.
During the Conference on Investment Opportunities in Highway, Transport and Logistics held in Mumbai, Maharashtra, Tata Motors signed the MoU. Mr. Nitin Gadkari, who is the Honorable Minister of Road Transport and Highways, also attended the conference with other delegates. According to the Maharashtra Government, the scrappage centre has the capacity to recycle 35,000 passenger/commercial vehicles per year.
The State Government of Maharashtra has ensured to lay-out multiple rules and regulations for the upcoming RVSF. The Industries, Energy, and Labour Departments will showcase their support in facilitating the necessary approvals by following the rules and regulations. Meanwhile, the Ministry of Road Transport and Highways (MoRTH) has released the draft vehicle scrappage policy for the RVSF.
The policy will also assist in addressing the intent of all stakeholders by implementing several benefits. These include the creation of a low import bill for scrap and crude oil and job opportunities for MSMEs. Along with low operation costs, the policy will enable the possibility of an upside in new vehicle sales for OEMs. The scrappage policy will also include safer and cleaner vehicles for consumers.
Aiming for a sustainable environment for all, Tata Motors plans to set up the RVSF by associating with a partner. Previously, the Indian automaker had signed an MoU with the Government of Gujarat to set up an RVSF in Ahmedabad. Tata Motors has stated that it will continue to work with other Government bodies to support the vehicle scrappage policy.
Recently, Tata Motors announced that it would implement a price hike of 2.5% for its entire commercial vehicle range. Starting from 1st January 2022, the price hike will affect several HCVs, LCVs, SCVs, Buses, and other variants. The reasoning behind the price hike is the rising costs of commodities such as steel, aluminium, and other metals. Therefore, to curb the use of raw materials in commercial vehicles, the automaker will compensate for the increased manufacturing costs.
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