India to install its first auto shredder

The state-run scrap metal trading firm MSTC Ltd., headquartered in Kolkata, India, has signed an agreement with Mumbai, India-based Mahindra Intertrade, a part of the Mahindra Group, to set up an auto shredding and recycling plant in India.

According to an online report by The Hindu newspaper, the joint venture seeks to help meet India’s annual ferrous scrap requirement of 5 million to 6 million tonnes, much of which is imported. Mahindra estimates imported ferrous scrap’s value at $1.8 billion.

 B. B. Singh, chairman and managing director with MSTC, is quoted inThe Hinduas saying, “India’s demand for vehicles stood at 23.34 million in 2015. It brings to the fore the issue relating to scrapping of end-of-life vehicles (ELVs), and when you consider all these points, this joint venture has immense potential for further growth.”

 The joint venture is starting with a single installation but is also looking at a Pan-India presence, he adds.

 According to India Infoline News Service, Gujarat and Maharashtra are two locations being considered for the auto shredding and recycling facility.

 The facility, reportedly the first of its kind in India, will have automotive recycling capabilities including collection, compaction, transportation, depollution, dismantling, shredding, recycling and disposal, says Sumit Issar, Mahindra Intertrade’s managing director.

“Its capacity will be about 1 to 1.5 lakh tonnes (100,000 to 150,000 tonnes), depending on the product mix,” Issar said. “It will begin commercial production by March 2018.”

Mahindra says India’s scrap requirement could grow to as much as 15 million to 20 million tonnes in the next five to 10 years.

Mahindra Partners Managing Partner Zhooben Bhiwandiwala said the facility will transform the way automotive scrap is effectively recycled in India.

Earlier this summer, several Indian states, including Chhattisgarh, Bihar, Kerala and Delhi, proposed or enacted bans on older vehicles with the goal of cutting down on air pollution in their regions. Such bans can help to create feedstock for the shredder.

According to Raipur, India-based SteelMint Group, the bans are on vehicles (including buses, trucks and auto rickshaws) older than 10 years or 12 years, depending on the state.

SteelMint says the directives are being backed by India’s National Green Tribunal and may ultimately spur the dismantling and recycling of several million commercial vehicles in India.