Union Road Transport and Highways Minister Nitin Gadkari on Wednesday announced plans of having at least three registered vehicle scrapping facilities in every district across the country.

Addressing the annual session of Automotive Component Manufacturers Association of India (ACMA), Gadkari said the road ministry has received 206 proposals for ropeway, cable car and funicular railway.

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"In every district, we can open 3 registered vehicle scrapping facilities," 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.

Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 percent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

The vehicle scrappage policy has come into effect from April 1, 2022. 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.

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