The Mahindra & Mahindra-MSTC joint venture is planning to set up vehicle scrapping plant at Greater Noida
With the much-awaited vehicle scrapping policy getting the go-ahead by the Prime Minister's Office last week leading to mandatory destruction of old commercial vehicles in near future, country's maiden vehicle shredding plant is set to take off.
The joint venture between the Mahindra & Mahindra group and Kolkata-headquartered public sector undertaking, MSTC Ltd, has also taken its first step last week for setting up its first scrapping plant at Greater Noida.
Steel ministry, MSTC's controlling authority, as well as joint venture officials have also been touring Mundra, Ahmedabad, Hazira, and also Alang, site of country's ship shredding hub, to explore opportunities for setting up of recycling zones and scrap-based steel plants, sources said.
Even as the government was preparing to take up the policy for consideration, a global tender was floated for the construction of the scrapping facility on a seven-acre land last week .
The joint venture was waiting for policy clarity as vehicle shredding is a new thing in India and several areas like deregistration of vehicles from Regional Transport Office and issue of certificate of destruction had to be cleared, sources said.
The policy, first-of-its kind in India, paves the way for the mandatory disposal of commercial vehicles which are more than 20 years old effective April 2020.
The Goods and Services Tax Council is now expected to consider a request to cut GST rate from 28% to 18% for a new commercial vehicle purchased in place of a scrapped vehicle.
The scrapping of vehicles throws up opportunity of taking out 28 million old rusty and polluting vehicles off the road to be shredded and recycled for specialised steels and other non-ferrous metals that are present in automobiles, officials of the joint venture said.
It would also reduce country's dependence on steel scrap imports, which is currently estimated at 8 million tonnes a year, primarily used for steel making.
While M&M is a major player is commercial vehicles, MSTC, which is primarily into trading, has experience in scrap handling through its auctioning activities, and also through its subsidiary Ferro Scrap Nigam Ltd.
The joint venture with Mahindra Intertrade, now renamed as Mahindra Accelo has created a dedicated brand Cero for this shredding business.
DISCARD VALUE
- The Mahindra & Mahindra-MSTC joint venture is planning to set up vehicle scrapping plant at Greater Noida
- The joint venture company was waiting for clarity on policy as vehicle shredding is a new thing in India
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