India: Tata Motors ties up with Gujarat govt. to set up vehicle scrapping centre, eyeing 99% materials recovery including aluminium

The Indian automobile giant Tata Motors plans to set up a 36,000 vehicle per year scrapping facility in Ahmedabad, Gujarat, in a row with India's focus to increase domestic scrap metal processing capacity and reduce dependency on scrap imports.

On 13^th August, Tata Motors signed an MoU at the Investor Summit in Gandhinagar, Gujarat, in presence of the Minister of Road Transport and Highways, Nitin Gadkari; Chief Minister of Gujarat, Vijay Rupani and other delegates from the Government of Gujarat and Government of India.

The objective with which the vehicle scrappage policy is implemented is to reduce pollution, while it will phase out unfit and polluting vehicles and promote recovery of aluminium and other metals and materials that can be recycled.

<iframe width="500" height="320" src="https://www.youtube.com/embed/AkO2X2VN5qE" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Nitin Gadkari said at an investor summit in Gujarat: “The vehicle scrapping policy is targeting recovery of 99% of material from vehicles and plans to channel used materials such as copper, aluminium, steel, rubber and plastic back into production, thereby reducing the cost of manufacturing by about 40%.

1^st October 2021, is the decision date for the national scrapping policy to become effective. Indian private passenger vehicles have a registration life of 15 years and commercial vehicles have a registration life of 10 years, after which they tend to become more polluting.

The Govt. will float evaluation points through private-public partnerships to ascertain the fitness of vehicles once they have reaches the end of their registration cycle. However, if found unfit, the vehicles will be barred from issuance or renewal certificate, hence it will be processed for scrappage.

The scrappage policy undertakes, vehicle owners who scrap their vehicles will receive a value ranging from 4% to 6% of the ex-showroom price of the old vehicle, a discount of 5% on buying new vehicles by showing the scrapping certificate, no registration fees and a rebate on road tax.

India’s market leader in the automotive industry, Maruti Suzuki India (MSIL) is also setting up a vehicle dismantling and recycling unit in Noida, Uttar Pradesh, in a JV with Toyota Tsusho Group and expects it to be functional in the current financial year ending March 2022.