Can the Alang shipyard model of dismantling ships from around the world, and becoming a global centre for ship-breaking and ship-recycling, be replicated for recycling automobiles? Nitin Gadkari, Union minister, MoRTH (ministry of road transport and highways) and shipping, urged industry to set up vehicle recycling businesses along the coast of the country, with port connectivity, to create an ecosystem for dismantling old vehicles and recovering precious metals. These players could not only recycle automobiles from India but also accept vehicles for recycling from across the world, he suggested.
A vehicle-scrapping plan is being proposed by the government for 15-year-old heavy and medium commercial vehicles, as it would not only boost growth of the Indian automotive industry with renewed demand, but would also help the generation of raw materials for the industry, Gadkari said. Recycling of aluminium, copper, steel and plastic will enable automotive companies to get raw materials at a cheaper price and improve their competitiveness in the market, he said. Industry is currently importing these raw materials at a higher price. These imports could be reduced and foreign exchange conserved, he pointed out. The minister was speaking at the AGM of the Mahratta Chamber of Commerce, Industries & Agriculture in Pune on Friday.
Gadkari said those scrapping old vehicles will get tax exemption from both the central and the state governments.