MSRTC to set up 100-acre vehicle scrapping facility near Sambhaji Nagar | Mumbai news

MUMBAI: In a bid to increase the revenue of the debt-ridden Maharashtra State Road Transport Corporation (MSRTC), the transport department has decided to set up a mega vehicle scrapping facility near Chhatrapati Sambhaji Nagar on 100 acre of land. It will be on Public Private Partnership (PPP) basis and the bidder will be selected on the basis of share he offers in revenue. The upcoming facility would be around 20 times bigger than the existing facilities in the state, which are on 2-5 acre of land.

In 2021, the central government came up with a policy for scientifically scrapping vehicles which are over 15 years old, under the Registered Vehicle Scrapping Facility (RVSF) guidelines. Maharashtra government adopted this policy in 2023, and as per the Automotive Industry Standard (AIS), guidelines have been laid down for granting recognition to such scrapping centres.

The largest facility will be built at Khuldabad in Chhatrapati Sambhajinagar district, on a 100-acre MSRTC-owned land parcel. Currently, eight authorised entities operate scrapping centers in the state, each with an annual capacity of scrapping a minimum of 1,000 vehicles.

Transport minister Pratap Sarnaik on Friday held a meeting regarding the scrapping of vehicles and facility centres. “This new centre will ensure that old vehicles are scientifically dismantled and their parts are permanently disposed off in a way that prevents reuse. The initiative is expected to generate a new and sustainable revenue stream for MSRTC,” he said.

This decision is expected to earn revenue for the debt-ridden MSRTC. The white paper released last week on the financial situation of MSRTC showed that its accumulated losses for five decades stand at ₹10,322 crore while dues towards employees’ provident fund and gratuity are ₹3,297 crore.

A transport department officer said that the site for the new facility has access from different regions of the state. “It’s on a fast track route from Mumbai and Vidarbha region due to Samruddhi Express highway. It is close to north Maharashtra and also western Maharashtra. In the coming years, around 6000 ST buses of MSRTC would go for scrapping as they would be old. Vehicles from government offices will also go for scrapping. So there is a huge scope for this facility to give good revenue to MSRTC.”

He also added that MSRTC is planning to float tender on the basis of revenue-sharing model instead of a one-time amount, and the company which will offer a bigger share would get the work.