Business

Union Minister Nitin Gadkari: Government Working To Make India A Global Automobile Manufacturing Hub

Union Minister Nitin Gadkari Tuesday said the government is working towards making India a global automobile manufacturing hub and the domestic industry is expected to be worth Rs 15 lakh crore in the near term.

Union minister said, “India could become a scrapping hub for the entire South East Asia”. “My aim is to develop a scrapping centre within a reach of 150 kilometres from all the city centres,” he added.

He said that the scrappage policy enables the removal of older and unfit vehicles and the introduction of new lesser polluting vehicles in a phased manner.

“It is estimated that the automotive demand generated by the scrapping policy will lead to additional GST revenue of Rs 40,000 crore to the government and the raw material cost for new cars will go down by 30 per cent,” he added.

He noted that the country currently imports 8 million tonnes of scrap steel annually.

Inauguration of Tata Motor’s vehicle scrapping facility

On  February 28, 2023, Union Minister Nitin Gadkari virtually inaugurated Tata Motor’s vehicle scrapping facility in Jaipur. He said the automobile sector currently contributes to 7.1 per cent of the nation’s GDP with the industry size at around Rs 7.8 lakh crore.

Further, he said, “The auto sector gives direct and indirect employment to around 4 crore people and this number is expected to grow to 5 crores by 2025. I am working with a target to make India the number one global automobile manufacturing hub and to take its size to Rs 15 lakh crore in the near future”.

The union minister said, “Vehicle scrapping would help in establishing an organised industry thereby enabling new employment opportunities”. “About 50-60 scrapping centres can bring down demand for imports of steel scrap making India self-reliant,” the minister added.

He further said, “We can establish automobile clusters in the port areas… ultimately, it is a win-win situation for all stakeholders”.

Also read: SBI Concludes $1 Billion Syndicated Social Loan Facility

The Re.Wi.Re or Recycle with Respect facility is operated by Tata Motors’ partner Ganganagar Vaahan Udyog Pvt Ltd to scrap end-of-life passenger and commercial vehicles of all brands.

Statement by Tata Motors Executive Director

Tata Motors Executive Director Girish Wagh said, “The inauguration of this RVSF (Registered Vehicle Scrapping Facility) heralds a new beginning in responsible scrapping of end-of-life vehicles. With globally benchmarked and optimised recycling processes, we intend to yield maximum value from the scrap for future use and minimise waste for the overall betterment”.

Tata Motors’ first registered vehicle scrapping facility in Jaipur has the capacity to dismantle 15,000 vehicles per annum.

Girish Wagh said, “The company looks forward to setting up Re.Wi.Re facilities across the country in collaboration with partners”.

He further said, “These decentralised facilities will benefit the customers, share the economic value generated, and create employment while addressing the need of scrapping vehicles in every part of the country in an eco-friendly manner”.

(With input from PTI)

Spriha Rai

Recent Posts

Seeing The Lord Among Devotees Is The Pinnacle Of Humility: Gautam Adani At Rath Yatra

Gautam Adani, along with his wife and Karan, participated in the Rath Yatra in Puri,…

2 hours ago

PM Modi Interacts With Group Captain Shubhanshu Shukla Aboard The ISS

PM Narendra Modi interacted with Group Captain Shubhanshu Shukla, the first Indian to reach the…

3 hours ago

Gautam Adani, Family Participate In Puri Rath Yatra; Launch Massive ‘Prasad Seva’ Initiative

Gautam Adani, along with his wife Priti Adani and son Karan Adani, joined thousands of…

4 hours ago

PM Modi, Leaders Pay Tribute To Former PM PV Narasimha Rao On Birth Anniversary

PM Narendra Modi on Saturday paid tribute to former Prime Minister PV Narasimha Rao on…

4 hours ago

Gautam Adani Hails Divine Experience At Rath Yatra; Praises Odisha’s Graceful Management

Gautam Adani conveyed profound spiritual emotions after witnessing the revered Rath Yatra of Lord Jagannath…

4 hours ago

Punjab’s Litchis Reach Middle East Markets In Boost To India’s Fruit Exports

In a step towards diversifying India’s horticultural exports, Punjab has successfully shipped its first consignment…

5 hours ago