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The Rs 120 crore auto shredding joint venture project by metal scrap trading firm MSTC and Mahindra Intertrade is awaiting the National Recycling Policy to drive the project more aggressively.
Union Steel Minister Chaudhary Birender Singh said a legislation is pending on old vehicles and with it, the steel industry will be able to source high quality scarp with auto shredding plants replacing imports.
The idea behind the JV is to meet India's annual scrap requirement of around 6 million tonnes, which is at present done through imports.
Singh said the JV is starting with a single unit, but is also looking at a pan-India presence.
"We are moving ahead with the auto shredding project and scouting for space for a collection centre. We have identified two-three location in the NCR area. But, we are waiting for the National Recycling Policy, which is expected very soon. Niti Aaayog is working on it," MSTC chairman and managing director B B Singh said here today on the sidelines of a foundation stone laying ceremony for its corporate office at Rajarhat.
"Unless there is a regulatory compulsion, supply of automobiles will not happen for shredding," he said.
The total project cost for setting up of an auto shredding and recycling plant and a few collection centres is around Rs 120 crore and the shredding plant will either be in Gujarat and Maharashtra.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)