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

“India has the potential to become a vehicle scrapping hub of the entire 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,” he said.

Under the new national vehicle scrapping policy which is effective from April 1, 2022, the center has said states will provide up to 25 percent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.