Immediately after launch of Vehicle Scrappage Policy by PM Narendra Modi, Tata Motors becomes first auto company to do THIS
The idea of scrappage policy was first initiated by Finance Minister Nirmala Sitharaman during her Budget 2021 speech on February 1, 2021
The auto arm of Tata Group — Tata Motors has signed a memorandum of understanding with the Gujarat government on Friday to set up a scrapping facility in the state. This comes on the same day when Prime Minister Narendra Modi launched a new scrappage policy earlier today.
Tata Motors will set up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles, the auto heavyweight said in the statement, adding further that the scrappage center will have the capacity of recycling up to 36,000 vehicles a year.
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While launching a new scrappage policy, PM Modi had said that this is a significant milestone in India’s development journey and declared that an individual will be given a certificate on scrapping the old vehicle, and he/he no need to pay a registration fee while buying a new vehicle by showing this certificate.
The idea of scrappage policy was first initiated by Finance Minister Nirmala Sitharaman during her Budget 2021 speech on February 1, 2021. She had said, “the government will announce a voluntary vehicle scrapping policy to phase out old and unfit vehicles.”
Similarly, Road and Transport Minister Nitin Gadkari had launched policies in late July on phasing out old and defective vehicles. The scrappage policy ultimate goals are to reduce air pollution, fulfilling India's climate commitments, improving road and vehicular safety, better fuel efficiency among others.
Tata Motors on Friday has become the first automobile company to open a scrapping facility Immediately after the launch of the policy.
The shares of the auto heavyweight ended flat but in the green by 0.3 per cent to Rs 307 per share on the BSE, as compared to the record high closing BSE Sensex with rising of 1 per cent today.
The counter was on the decline in the last month, as a company came out with a quarterly update stating the semi-conductor chip shortage issue and likely negative EBIT of its premium cars arm Jaguar and Land Rover. The stock had hit a 52-week high of Rs 360.65 per share on June 15, 2021.
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