Mini ratna company MSTC will set up India’s first mechanised scrap shredding plant and has engaged KPMG to prepare a detail project report. Chairman and managing director SK Tripathi told FE that the MSTC Board has given an in-principle approval to the project but the final clearance from the Board will come after KPMG submits its DPR in June-July.
A joint task force comprising officials of MSTC, steel ministry and KPMG will visit the US and Germany to identify a technology partner, Tripathi said.
He said though nothing about the size and the location of the plant has been decided yet, the project would not be of huge investment but would be of strategic importance since the country has to import 8-10 million tonne of scrap from the US and European countries every year.
?We have enough scrap in our country but it is in the unorganised sector. In fact a shredding plant in the county can collect shred-able scrap, classify it and give it to the secondary steel producers. MSTC has decided to take up the project with a view to lower scrap imports, the prices of which are on the rise in the global market,? said Tripathi.