As the government moves ahead with vehicle scrappage draft policy for cutting carbon emissions, Mahindra MSTC Recycling Private Limited (MMRPL) - a joint venture between Mahindra Intertrade Ltd. and goverment enterprise MSTC Ltd - plans to increase its footprint across 200 locations across the country and will set up 25 automotive and steel recycling units by 2025. According to Sumit Issar, Managing Director of Mahindra Intertrade Ltd, about 9 million end-of-life vehicles (ELVs) are expected every year for recycling in the years to come. About 60 per cent of 9 million vehicles are two-wheelers.
At present, the vehicle scrapping and recycling is largely done in unscientific manner in the unorganised sector. There are about half a million vehicles that are processed annually.
MMRPL had set up its first automotive and steel Recycling facility under the brand name CERO at Greater Noida in January 2018. It is India's first organised, fully compliant, pollution free recycling facility. ELVs are collected, de-polluted and dismantled at the facility. It has recently opened two more recylcing units in Chennai and Pune and operates out of nine cities.
The automated plant has the capacity to recycle old trucks, buses, cars and two/three wheelers and consumer durables. The recovered raw materials from the vehicles will be supplied to companies that can make use of them, provided they meet the stringent quality and sustainability requirements, said Sumit Issar.
Automotive steel is one of the best steels available as it can be easily melted and re-moulded, helping the case of circular economy. Mahindra group is looking to achieve zero carbon emission by 2040 and as part of it every group company has been given the procedures and targets to follow. CERO recently signed MOU with M&M and Renault for vehicle scrappage service.
The government cam up with much-awaited draft policy on vehicle scrappage in March. The policy outlines the criteria for defining and scrapping ELVs. According to the studies, there are about 51 lakh light motor vehicles older than 20 years in India, while 34 lakh vehicles are older than 15 years. Around 17 lakh medium and heavy vehicles are older than 15 years. The policy says that these vehicles are unfit for roads and it emit more than 10-12 times the pollutants than fit vehicles.
This proposed policy envisages to phase out unfit vehicles to reduce carbon emission and meet the climate commitments. It will also improve road safety and fuel efficiency.
The formalisation of scrapping industry will also help improve the availability of low cost material for automotive, steel, power transmission and electronics industries. The ministry of road transport and highways wants to popularise scrapping in organised sector through public private partnerships.
For taking off the mission, the government earlier announced that the vehicles older than 15 years, which are owned by the government as well as the PSUs, will be scrapped by October 1, 2022. They plan to start mandatory fitness testing for heavy duty vehicles by October 2023 and other vehicles by October 2024.
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