India’s first government-approved vehicle scrapping and recycling unit in Noida

The country’s first government-authorized center for dismantling and recycling expired vehicles have been set up in Noida near Delhi. Union Transport Minister Nitin Gadkari inaugurated the joint venture between Maruti and Toyota.  Pollution units will be set up in other states as and when required.  Maruti Suzuki Toysu India (MSTI) has set up an 11,000 sq m relay unit at a cost of Rs 44 crore.  It takes 200 vehicles a month to demolish a car in 200 minutes.  About 95% of the scrapped vehicle will be given to accredited institutions for reuse. The vehicle scrapping is also done with the newest technologies.

It’s a step towards a circular economy, with the aim to promote organized, transparent, and environment-friendly dismantling of ELVs. The decision has been taken as part of the center’s Vehicle Scrappage Policy. This is the third authorized scrapping unit. Currently, two facilities, one each in Noida and Chennai which was developed by a JV between state-owned MSTC and Mahindra are authorized to do vehicle scrapping.

Addressing the event, Gadkari said, “The scrappage policy will be one of the key factors to control pollution. Old cars are much more polluting than new ones, so they need to be phased out. We expect sales to grow 10-12 % due to scrappage policy.” Gadkari also said the government is considering a proposal to provide more tax-related concessions on vehicles that are purchased after scrapping old vehicles. He said such scrapping and recycling facilities will be developed in each district.

However, In August, Tata Motors signed an agreement with the Government of Gujarat, through the ports and transport department, to support setting up a registered vehicle scrapping facility in Ahmedabad for end-of-life passenger and commercial vehicles. The scrappage center will have the capacity to recycle up to 36,000 vehicles a year.

Although International standard Japanese technology has been used here, the equipment is made entirely in India. The scrapping will be done absolutely eco-friendly and the oil in the vehicle, airbags, batteries, or gas in the air conditioner will not be expelled during the dismantling. Moreover, the parts of the dismantled vehicles will be handed over for recycling only to authorized companies. 

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The money will be transferred directly to the bank account of the vehicle owner.  A certificate of demolition of the vehicle will also be issued.  The company has launched a call website called msti.co.in and a center number 18004193530.  Gadkari said three or four demolition centers were needed in each district.  The government’s vehicle demolition policy was announced by Prime Minister Narendra Modi three months ago.  The term is estimated at 15 years for commercial vehicles and 20 years for private vehicles.