Tata Motors on Friday said it has joined hands with the Maharashtra government to support setting up of a registered vehicle scrapping facility (RVSF) in the state.

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The auto major has inked a memorandum of understanding (MoU) with the state government to help set up the scrappage centre with a recycling capacity of up to 35,000 vehicles a year for end-of-life passenger and commercial vehicles.

The state industries, energy and labour department will support in facilitating the necessary approvals as per the rules and regulations for setting up of the facility, the company said.

"Besides the well-known benefits that appropriate vehicle scrapping offers boosting the setup of a circular economy, this initiative will also help in reiterating our commitment to strengthen our leadership in the sustainable mobility space. We are proud to partner with the policymakers on this initiative of setting up scrapping facilities across the country. It is the beginning of a new chapter and a step in the right direction for India's transportation sector," Tata Motors Executive Director Girish Wagh said in a statement.

Tata Motors had earlier signed an MoU with the Gujarat government for setting up a scrapping facility in Ahmedabad.