The national car scrapping policy is a win-win policy for all stakeholders


Road Transport and Highways Union Minister Nitin Gadkari said the national car scrapping policy is a mutual win-win policy for all stakeholders. Inaugurating the vehicle scrapping and recycling facility set up by Maruti Suzuki Toyotsu India Private Limited (MSTI) in Noida, he said the policy aims to create an ecosystem to phase out unsuitable vehicles and pollutants from Indian roads and to achieve this. state-of-the-art disposal and recycling units are required.

The minister said the policy would help increase auto sales, create jobs, lower import costs, generate additional GST revenue and help solve the global semiconductor chip shortage. Gadkari said the policy provides an important link in creating a circular economy (from waste to wealth) for the country. He said three to four demolition centers should be set up in each district.

The Ministry of Road Transport and Highways recently launched the visionary program for the voluntary modernization of the vehicle fleet (Vehicle Scrapping Policy). This policy aims to create an ecosystem to phase out old, dangerous and polluting vehicles and replace them with newer, safe and fuel-efficient vehicles. The ministry has also notified the Rules for Registered Vehicle Scrapping Facilities (RVSF) to enable the establishment of modern vehicle scrapping facilities in India that can recycle vehicles in a environmentally friendly manner. the environment.

The current vehicle dismantling and recycling industry in India is not organized and the recycling of older vehicles is not environmentally friendly. This not only leads to inefficient management of resources, but also to failure to realize the full value of high strength steel alloys and recovery of rare earth precious metals. The existing ELV disposal cycle has a low recovery percentage and many materials are wasted or not properly recycled. According to unofficial industry estimates, the recovery percentage in India is around 70-75%, while the global benchmarks for scrapped vehicle recovery are in the range of 85-95%.

As the procedures in force in the unorganized sector for recycling / disposal are not carried out with respect for the environment, this Ministry is committed to promoting the establishment of RVSFs, in order to allow the use of environmentally friendly processes in this regard. The vehicle scrapping policy thus creates such a formal business opportunity and promotes scientific recycling within the scrapping industry.

The RVSF inaugurated by the Minister was set up over an area of ​​11,000 m² with a processing capacity of 24,000 vehicles per year. The factory was set up by Maruti Suzuki India Ltd in collaboration with the Toyota Tshusho group. Gadkari praised Maruti Suzuki and Toyota Tshoshu Group and also called on other stakeholders to come forward to create state-of-the-art disposal and recycling facilities to help achieve policy goals .