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Making India a Global Auto Manufacturing Hub 

Around 4 crore people directly and indirectly get employment through the auto sector - Union Minister Nitin Gadkari

New Delhi: Union Minister Nitin Gadkari said the government is working towards making the Nation a global automobile manufacturing hub, additionally the domestic industry is expected to be worth Rs 15 lakh crore in the near term. 

While virtually inaugurating Tata Motor’s vehicle scrapping facility in Jaipur, Minister said with the industry size at around Rs. 7.8 lakh crores, the automobile sector currently contributes to 7.1 per cent of the GDP. 

“Around 4 crore people directly and indirectly get employment through the auto sector, which is expected to grow to 5 crores by 2025. He further added he working with a target to make India the number one global automobile manufacturing hub and, in the near future, to take its size to Rs 15 lakh crore.” 

The scrappage policy allows the elimination of unfit and older vehicles and the introduction of new lesser polluting vehicles in a phased manner. 

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He noted; currently, the country imports 8 million tonnes of scrap steel annually. About 50-60 scrapping centres can bring down demand for imports of steel scrap, making India self-reliant. 

Gadkari aims to establish an organized industry with the help of scrapping centers, enabling new employment opportunities. Tata Motors has set up the first registered vehicle scrapping facility in Jaipur, with a capacity to dismantle 15,000 vehicles per annum. 

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. The company plans to set up Re.Wi.Re facilities nationwide in collaboration with partners to benefit customers, share economic value generated and create employment while addressing the need for scrapping vehicles in an eco-friendly manner.  

Tata Motors’ executive director Girish Wagh stated that the launch of the Registered Vehicle Scrapping Facility (RVSF) signifies the start of responsible scrapping of end-of-life vehicles. The company aims to utilize globally benchmarked and optimized recycling processes to extract maximum value from the scrap while minimizing waste for the overall betterment.

The scrapping policy is expected to generate automotive demand leading to an additional GST revenue of Rs. 40,000 crore for the government. Additionally, the cost of raw materials for new cars is projected to decrease by 30%.