New Delhi: Prime Minister Narendra Modi will launch the national auto scrapping policy on Friday at the “Investor Summit for the Establishment of Vehicle Scrapping Infrastructure” in Gujarat.
Hon. PM Shri @narendramodi ji to launch national auto scrapping policy at ‘Investor Summit for Establishing Vehicle Scrapping Infrastructure’ in Gandhinagar, Gujarat, “tweeted Thursday the Minister of Road Transport and Motorways of the Union.
The investor summit is organized to invite investments for the establishment of vehicle scrapping infrastructure as part of the voluntary modernization program of the vehicle fleet or the vehicle scrapping policy, the prime minister’s office said in a statement.
The summit is organized by the Ministry of Road Transport and Highways (MoRTH) and the government of Gujarat. It will be held in Gandhinagar, Gujarat and will see the participation of potential investors, industry experts and relevant central and state governments.
The vehicle scrapping policy aims to create an ecosystem to phase out unsuitable and polluting vehicles in an environmentally friendly and safe manner, the statement said.
Scrapping is the process in which ELV (End of Life Vehicle) is eliminated. This can be done using shredders which tear them into tiny pieces of metal which can then be recycled as well. The other non-metallic parts of the vehicle are then disposed of in a sustainable process.
Vehicle scrapping has long occupied the pockets of the unorganized sector in India. With the availability of cheap vehicle parts, Mayapuri in Delhi is home to Asia’s largest scrap metal market. This popularity is also appreciated by the similar markets of Kurla in Mumbai, Shivajinagar in Bengaluru and Pudupet in Chennai.
It can be noted that the Mayapuri scrap market, which looks more like the vehicle graveyard, has been in such demand that its annual turnover is estimated at around Rs 6,000 crore. Although there are no statistics available on the number of people employed in the market, CPCB estimates that currently around 3,000 stores are operating in the region.
However, with no rules or regulations in place, the scrap dealers in these places are heavily profit oriented. Handling and conditioning of scrap metal, openly eliminating waste.
The country’s vehicle scrapping policy was introduced in the 2021 budget session.
In October 2019, the Draft Authorized Vehicle Scrapping Facility (AVSF) Guidelines issued by the Ministry of Road Transport and Highways (MoRTH) detailed the infrastructure requirements and procedure, simplifying the process for entities interested in entering this business.