Union minister Nitin Gadkari on Saturday said his aim is to develop at least one automobile scrapping facility within 150 kilometres from each city centre, while asserting that the country has the potential to become the vehicle scrapping hub for the South Asian region.

Speaking at an event organised by the Material Recycling Association of India (MRAI), Gadkari said the National Vehicle Scrappage Policy is a key initiative in the Indian transport and sustainability sector, and this will enable the removal of older and unfit vehicles and introduction of new lesser-polluting vehicles in a phased manner.

“My aim is to develop a vehicle scrapping centre within the reach of 150 km from all the city centres,” the road transport and highways minister said.

Gadkari noted that the road transport and highways ministry has designed the vehicle scrapping policy in a way that allows all types and sizes of investors to come and establish scrapping centres.

“Developing a large number of vehicle scrapping centres... we can also develop multiple authorised collection centres of vehicle scrapping units in one city, which will have the authority to deregister a vehicle and issue deposit certificates,” he said.

Prime Minister Narendra Modi had launched the National Vehicle Scrappage Policy in August last year and had said it will help phase out unfit and polluting vehicles and also promote a circular economy.

He had also said the material recycling sector gives direct and indirect employment to 4 crore people and this number is expected to go up to 5 crore by 2025.

Gadkari said: “India has the potential to become the vehicle scrapping hub for the South Asian region. We can import a large number of old vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka for scrapping in our country.”

The minister also observed that there is a challenge to establish a circular economy to recover maximum value from the scrap or end-of-life vehicles.

“The technology used for scrapping will be the game changer in deciding the economics of scrapping and

recycling,” he said, adding that the equipment can be installed at the scrapping unit to maximise raw material extraction or dismantling equipment.

Gadkari also asked metal recycling industry leaders to open vehicle scrapping centres in 112 aspirational districts of the country to create more employment opportunities in these districts.

Under the new policy, effective from April 1, the Centre has said states and Union Territories will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.