Homegrown auto major Tata Motors on Friday said it has joined hands with Gujarat government to support setting up of a vehicle scrapping facility in Ahmedabad.
The company has signed a memorandum of understanding (MoU) with the state government through the ports and transport department, Tata Motors said in a statement.
The scrappage centre, which will be for both passenger and commercial vehicles, will have a capacity of recycling up to 36,000 vehicles a year. Tata Motors will set up the scrapping centre in association with a partner, it added.
According to the statement, the state's ports and transport department will support in facilitating the necessary approvals as per the rules and regulations of the Gujarat government and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for setting up of the registered vehicle scrapping facility.
Tata Motors Executive Director and President (Commercial Vehicle Business Unit) Girish Wagh said, "It is indeed a historic step for Tata Motors, as the company announces its participation in the vehicle scrapping space."
He said appropriate scrapping of end-of-life vehicles will have sustained benefits for the ecosystem stakeholders and the environment alike.
"The scrappage policy by the MoRTH is a welcome move and a step in the right direction to promote safer and cleaner vehicles in India, and it is a crucial step in building a circular economy," Wagh added.
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