The Indian government will soon permit automobile dealers to set up vehicle scrapping facilities, the minister for roads, highways and transport Nitin Gadkari said on Monday, September 18.
The minister stated that dealers were the direct connection with vehicle users and several dealers have come forward with proposals to set up scrapping facilities as they are in the frontline of exchanging old vehicles while selling new ones and can have the necessary volumes of old vehicles to directly feed their own scrapping facilities.
He said that the approval for setting up vehicle scrapping facilities would be in line with that granted to automobile manufacturers, with leading passenger car makers like Maruti Suzuki India Limited (MSIL) and Tata Motors Limited having already operationalized scrapping facilities across the country.
Enabling dealers to set up scrapping facilities would rapidly increase the number of scrapping facilities across the country as scrapping yards are still quite few compared to a number of old passenger cars and other old vehicles on the roads, the ministry said.