Mahindra Intertrade Ltd., a
part of the Mahindra Partners Division of Mahindra Group, and MSTC Ltd. (a
Government of India enterprise) have signed a formal joint venture agreement to
set-up India’s first-of-its-kind greenfield auto shredding and recycling
capability. In April 2016, the two companies had signed a Memorandum of Understanding.
REPORT: Mahindra Intertrade, MSTC Ltd. sign MoU to set up India’s first auto
The latest joint venture agreement
was signed under the aegis of Minister of Steel and Mines, Chaudhary Birender
Singh. Secretary Steel (Government of India), Dr. Aruna Sharma, graced the
occasion, while senior management from the Mahindra Group - Zhooben Bhiwandiwala,
Managing Partner, Mahindra Partners; Sumit Issar, Managing Director, Mahindra
Intertrade Ltd. (MIL), and B. B. Singh, Chairman & Managing Director, MSTC
Ltd. were also present along with other dignitaries.
This first-of-its-kind in
India auto shredding facility will establish an Integrated Automotive Recycling
capability for end of life vehicles - from collection, compaction,
transportation, depollution, dismantling, shredding, recycling, and disposal.
This JV is a significant first-step towards ensuring that end-of-life vehicles
(ELVs) are recycled in a sustainably responsible manner, with the aim of 100%
recycling of all materials. State-of-the-art, high-tech shredding and sorting
equipment to meet global standards will ensure that the scrappage of vehicles
is carried out in an environment friendly manner as per guidelines released by
the MoEFC (Ministry of Environment, Forest and Climate Change) and CPCB
(Central Pollution Control Board).
The concept of vehicle
scrapping is still new to India as compared to the West. While the number of
vehicles has increased substantially over the last two decades, there is no
recycling or scrapping provision in place to deal with old and discarded
vehicles. While Gujarat and Maharashtra have been shortlisted as probable
locations for the first integrated facility, the JV will from commencement have
an all India footprint for collection/dismantling of vehicles. Given the scale
and size of the project, it aims to provide eco-friendly disposal of end of life
vehicles, apart from creating a brand new Industry and multiple growth
opportunities. It is anticipated that
this JV will establish its presence across the country to tap into the large
reservoir of ELVs, while initially establishing its mother facility in either
Gujarat or Maharashtra.