Tata car, SUV scrapping facility opens near Jaipur

Tata Motors has opened its first Registered Vehicle Scrapping Facility (RVSF) on the outskirts of Jaipur as part of its plan to have dozen such facilities for which letters of intent (LoI) have already been given. Aptly titled Re.Wi.Re – Recycle with Respect – the company plans to open at least one such vehicle scrappage unit in each state before expanding further. 

• Tata’s scrappage facility can handle more than 15,000 vehicles a year
• In India, an estimated 51 lakh vehicles are more than 20 years old 
• Mahindra, Maruti Suzuki Toyostu also run vehicle scrapping hubs in India

Tata’s brand new scrappage facility, run by Ganganagar Vaahan Udyog Ltd along the NH-8 Jaipur-Ajmer highway, is being used to scrap passenger and commercial vehicles of all brands that have reached the end of their useful lives. The facility is on five acres of land and can handle more than 15,000 vehicles each year, claims Tata. 

The facility was virtually opened by Union Minister of Road Transport and Highways Nitin Gadkari. 

He pointed out that the change will also help India become less reliant on scrap imports in the coming years since recycling will increase as people get rid of their old vehicles. For instance, about 50 to 60 such centres will significantly reduce India’s steel scrappage, he noted, before adding that the industry can become a hub for vehicle scrappage in the South Asian region.

According to Girish Wagh, executive director, Tata Motors, emphasised that the intention is to yield maximum value from the scrap for future use and minimise waste for the overall betterment. “These decentralised facilities will benefit the customers, share the economic value generated, create employment while addressing the need of scrapping vehicles in every part of the country in an eco-friendly manner,” Wagh said.

The Indian government estimates that India has 51 lakh light motor vehicles that are older than 20 years and another 34 lakh are older than 15 years. There are around 17 lakh Medium and Heavy Commercial Vehicles (M&HCVs) older than 15 years without a valid fitness certificate. The vehicle scrappage ecosystem is expected to attract additional investments of around Rs 10,000 crore and 35,000 job opportunities, the government estimates suggests.

The centre’s vehicle scrappage policy, which was announced in early 2021, envisages that the vehicle owner will get approximately 4-6 percent dsicount of ex-showroom price on purchase of new vehicle in addition to getting discout on road-tax of upto 25 percent for personal vehicles and 15 percent for commercial vehicles. 

Vehicle scrappage basically eliminates the use of old, polluting vehicles on the road. A vehicle scrappage policy, which has been adopted by a number of developed markets, is typically required by a government to accelerate the replacement of old, polluting vehicles with new vehicles. A strategy like this has the added benefit of stimulating the domestic automobile and automotive industry while also removing inefficient, polluting vehicles from the road, clearing the way for greener driving and cleaner air, the industry observers claim.