India: Recycling of Old Cars and Trucks

In India, there are plans to build the country’s first vehicle shredding and recycling center.

According to Indian Media and News Agency Reuters, the company Mahindra Intertrade will set up the first plant in partnership with state-controlled MSTC Limited near a port. It is intended that operations begin in early 2018.

As reported, India is considering introducing a policy to scrap old vehicles, like the cash-for-clunkers program the United States tried during the global economic recession to boost auto sales. The government also plans to enforce stricter vehicular emission rules, potentially opening up an opportunity for companies to recycle older cars and trucks.

India currently does not have an organized car breaking industry. As a result, most of the scrap needed by steelmakers and other industries is imported. The planned shredding plant could replace imported scrap and cut India‘s foreign exchange outflow, the steel ministry was quoted. “Though vehicles are typically licensed to run for only 15 years in India, there are about 30 million vehicles on roads that pre-date 1990,” Reuters stated.

About MSTC

Since its inception in 1964, under the administrative control of the Indian Ministry of Steel, MSTC Limited has endeavored to become one of the stalwarts of the nation‘s steel industry. Till 1991 the company was the canalizing agency of the Government of India for import of scrap and ships for breaking.

Recently MSTC established itself as a major player in importing bulk raw material for various industries. It has emerged as the only Public Sector Company in India dealing in e-Commerce. The new initiatives by MSTC are related to investments in various new ventures and the development of constructive partnerships with international, national, regional and local authorities.

Photo: Andi Karg

GR42016