India Gives Green Signal to It's First Automobile Shredding Plant In Delhi

INDIA August 08 2016 7:30 PM

MUMBAI (Scrap Register): For setting up a Joint Venture Company for the first Auto Shredding Plant in India, a Joint Venture agreement was signed today between MSTC Limited and Mahindra INTERTRADE Ltd in the presence of the Minister of Steel Chaudhary Birender Singh and the Secretary Steel, Government of India, Smt. Aruna Sharma.

Speaking on the occasion Chaudhary Birender Singh said this is a unique initiative and will give boost to the “Make in India” programme by providing a source of specialized steel. He said that PPP mode is the way forward for bringing in latest technology into the recycling of high-grade (auto-grade) steel and providing high-grade raw material to the steel plants in the North India as well. He said there is need for zoning of collection centers in the country and more such plants can be set up in the country in future.

The shredding Plant will be first of its own kind in India and set up in association with Mahindra Inter Trade Limited in PPP mode. It will reduce the dependence on present annual import of shredded scrap of 5-6 million tone in our country and consequently reduce the foreign exchange out go. It will also help in domestic sourcing of raw material for secondary steel sector.

As the plant will use end of life vehicle (ELV) aged more than 10 years and white Goods, recycling of the same will also conserve the natural resources such as Iron Ore, Coal, Limestone, etc. which are used in making Steel. The plant will have the capacity of one lakh TPA. In addition, it will alleviate the adverse impact of pollution for a sustainable development.

The Joint Secretary of Ministry of Steel Shri Sunil Barthwal, Member of Group Executive Board of Mahindra & Mahindra, Shri Zhooben Bhiwandiwala, Managing Director of Mahindra Inter Trade, Shri Sumit Issar and Chairman and Managing Director of MSTC Limited, Shri B. B. Singh and other dignitaries were present on the occasion.

Shredding Plant – to start Scientific Recycling in the country:

MSTC has embarked upon setting up of the first mechanized Shredding plant in India to bring a whole new method of processing of scrap from the End of Life Vehicles (ELV) aged above 10 years and other white goods like air-conditioners, refrigerators, which after usage for a long period become unserviceable for further operation

Scrappage Policy for end of life vehicles is under active consideration by the Government of India which will ensure steady availability of raw materials for the plant.

It will reduce the dependence on present annual import of scrap of 5-6 million tonnes of Shredded Scrap in the Country, consequently reduce the foreign exchange outgo. In addition, the auto grade steel of vehicles will be recycled into a similar grade of steel as against making lower grade steel by unorganized sector.

As per the ‘Scrappage Policy’ of Government of India, a scheme of incentivizing shredding of Motor vehicles in the form of subsidy/ excise duty relief and additional discounts by vehicles manufacturer will help raw material security for the plant. This may be in line with ‘Cash for Clunkers’ which is in vogue in several countries in Europe and USA.

The main shredding plant will shred the ELV and white goods and separate the ferrous components via magnetic separation. The rest of the output from the main shredding plant is processed through the ‘eddy current’ separator for non- ferrous material to yield two mixtures of non- ferrous metals called Zorba (which is predominantly aluminum) and Zurik (which is predominantly Stainless Steel) in addition to the main output as shredded scrap.

A down- stream non- ferrous separator could be used further to separate the Zorba and Zurik to its component metals so as to tap the market of non- ferrous metals like aluminum, copper and others, in India.

The shredded scrap will help secondary steel sector for its raw material requirements resulting in reduced dependence on imports.

The total investment for setting up the shredding plant having a capacity of 1 lakh tones per annum and the collection centers is expected to be about Rs. 120 Cr.