Shredding Plant - to start Scientific Recycling in the country:

MSTC has embarked upon setting up of the first mechanized Shredding plant in India to bring a whole new method of processing of scrap from the End of Life Vehicles (ELV) aged above 10 years and other white goods like air-conditioners, refrigerators, which after usage for a long period become unserviceable for further operation

Scrappage Policy for end of life vehicles is under active consideration by the Government of India which will ensure steady availability of raw materials for the plant.

It will reduce the dependence on present annual import of scrap of 5-6 million tonnes of Shredded Scrap in the Country, consequently reduce the foreign exchange outgo. In addition, the auto grade steel of vehicles will be recycled into a similar grade of steel as against making lower grade steel by unorganized sector.

As per the ‘Scrappage Policy' of Government of India, a scheme of incentivizing shredding of Motor vehicles in the form of subsidy/ excise duty relief and additional discounts by vehicles manufacturer will help raw material security for the plant. This may be in line with ‘Cash for Clunkers' which is in vogue in several countries in Europe and USA.

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