India – Indian steel services company Mahindra Intertrade has signed a formal joint venture agreement for high-tech greenfield auto shredding to boost the country’s recycling capability. The business deal was struck in the presence of the country’s minister of steel and mines Shri Chaudhary Birender Singh.
This ‘first-of-its-kind facility’ for India is intended to bring together all aspects of car recycling, from collection, compaction, transportation, depollution, dismantling, shredding and recycling to disposal. The joint venture is described as a ‘first step’ towards recycling 100% of all the materials in India’s abundant end-of-life vehicles (ELVs).
Gujarat and Maharashtra have been shortlisted as possible locations for the recycling plant. Both cities are deemed a good starting point for raising India’s car recycling sector to global standards.
‘India does not have any modern auto shredding plant yet,’ notes B. B. Singh, chairman and managing director of MSTC, of which Mahindra Intertrade forms part. ‘We are sure of setting up a world-class facility which will go a long way in recycling of ELVs and reduce dependence on mining iron ore and other resources.’
Such an initiative would also yield significant foreign exchange savings as a result of import substitution of scrap, comments Sumit Issar, managing director at Mahindra Intertrade. He points out that steelmakers in India import more than 5 million tonnes of scrap per year for recycling into finished steel.