Domestic automobile giant Tata Motors has joined hands with the Gujarat state government to assist in establishing a vehicle scrapping facility in the city of Ahmedabad.

The automobile company said that the two parties have signed a memorandum of understanding (MoU) via the ports and transport department of the state government.

The planned scrapping centre will have the overall capacity to recycle around 36,000 vehicles, including both passenger and commercial ones, annually.

The ports and transport department of the Gujarat government will enable Tata Motors acquire the required approvals according to the mandated rules and regulations.

Accordingly, the draft vehicle scrappage policy announced by the Ministry of Road Transport and Highways will also be adhered to in setting up this forthcoming centre.

Girish Wagh, a leading executive of Tata Motors, told the Economic Times, “It is indeed a historic step for Tata Motors, as the company announces its participation in the vehicle scrapping space.”

Wagh added, “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.”

He further added that proper scrapping of old vehicles will roll out sustained benefits and advantages to both the stakeholders in the ecosystem and also the environment.