New Delhi, Aug 13 (IANS): Automobile manufacturer Tata Motors has tied up with the Gujarat government to set up a vehicle scrapping facility in Ahmedabad.

Accordingly, the company entered into a Memorandum of Understanding (MoU) with the Gujarat government through the Ports and Transport Department to support the setting up of a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad.

The facility will be intended for end-of-life passenger and commercial vehicles.

As per the company, the scrappage centre will have the capacity of recycling up to 36,000 vehicles a year.

As per the terms of the MoU, the Ports and Transport Department will support in facilitating the necessary approvals as per the rules and regulations of the state government and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for the setting up of the RVSF.

"It will address the intent of all stakeholders with benefits such as low import bill for scrap and crude oil, job opportunities for MSMEs, the possibility of upside in new vehicle sales for OEMs, low operation cost for vehicle owners, safer and cleaner vehicles for consumers and a sustainable environment for all," Tata Motors said in a statement.

"Tata Motors will set up the scrapping centre in association with a partner," it added.