MSTC wants to set up vehicle shredding plant

Metal scrap trading PSU MSTC has sought government approval for setting up a vehicle shredding plant in India that entails Rs 120 core initial investment, mainly to cater to needs of the automobile sector.
At present, India is dependent on other countries and imports about 9 million tonnes a year of vehicle scrap for recycling into high-value autograde products.
"We have plans to set up a used vehicles shredding plant to cater to raw material needs of the automobile industry, which is dependent on imports from US, UK and other nations. We have sought permission from the Ministry of Finance for a 80 tonne per hour capacity plant with an initial investment of Rs 120 crore," MSTC Chairman S K Tripathi told PTI.

He said India needed at least 25-30 such plants to cater to the needs of the domestic industry and the proposed MSTC plant would incentivise the private sector to venture in the field.
The plant is likely to come up in Gujarat.
"Once we get necessary approvals from the Ministry of Finance and other departments and shredding material starts pouring in, we can start the plant within one year," he said.

India does not have any legislation for use of end of life vehicles and upon government approval such public transport buses, defence vehicles can be recycled.
Shredding plants are there in almost all advanced and developing nations like the US, UK, China and Singapore and going by rough estimates there could be 4 to 5 million tonnes end of live vehicles per annum, Tripathi said.

The venture will result in scientific recycling of scrap besides creating jobs. It will also ensure minimum damage to environment.
Last week, Steel Minister Beni Prasad Verma had said that MSTC has proposed a plant for shredding the used cars, scooters and other miscellaneous goods to add value to recycled scrap.
The existing un-organised method of processing of metal scrap results in lesser recovery rate as compared to international standards and is not consistent with international pollution and environmental norms, he added.
In India the demand for steel is driven by the automobile and the construction industry and the secondary steel producers use shreddable scrap for production of steel by the Electric Arc Furnace method or the Induction Furnace method.

MSTC is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel.