Mahindra Cero, the vehicle scrappage JV (Mahindra MSTC Recycling) of the Mahindra Group, is set to expand its operations. The company has inked an MoU with the government of Maharashtra through the Industries, Energy and Labour Department to set up additional world-class vehicle scrapping centres in Maharashtra.
The proposed scrappage centres will have the capacity of recycling end-of-life 2- and 3- wheelers, passenger and commercial vehicles in accordance with all the legal and environmental norms prescribed by CPCB and guidelines provided by MoRTH. The MoU was signed in the presence of Nitin Gadkari, Minister for Road, Transport & Highways (MoRTH). Currently in Maharashtra, Cero already has a state-of-the-art recycling facility at Pune and is looking to set up four additional facilities in the cities of Mumbai, Nagpur, Aurangabad and Nashik.
The MoU was signed on the background of the Conference on Investment Opportunities in Highway, Transport and Logistics held in Mumbai last week. The Industries, Energy and Labour Department will facilitate the necessary approvals as per the rules and regulations of the State government and the draft vehicle scrappage policy released by MoRTH for setting up of the RVSF.
Cero says its recycling centres will provide a hassle-free option for customers to scrap their vehicles. End-of-life vehicle owners have to give a missed call on 1800-267-6000 or log on to cerorecycling.com and register an enquiry. From thereon, the entire process will be handled by the Cero team.
Speaking on the MoU, Sumit Issar, Managing Director of Mahindra Accelo said, “We are delighted to sign an MoU with Government of Maharashtra and would like to acknowledge the proactive efforts being taken by the Government. Cero aims to create a network of world-class facilities across Maharashtra and India. Our centres will provide a platform for customers to scrap their vehicles in environment friendly manner and avail the benefits on purchase of newer vehicles which will be linked to Certificate of deposit – to be provided by Cero. From a sustainability point of view, through recycling of old vehicles, we aim to reduce India’s dependence on steel scrap imports and conservation of natural resources which go into the production of steel.”
Tata and Maruti also in vehicle scrappage business
The momentum for setting up vehicle scrappage facilities across India is fast picking up. Cero Recycling and the Maharashtra government’s MoU comes along with Tata Motors’ plan to set up a unit in the state, with capacity of recycling 35,000 units per annum.
India’s passenger vehicle market leader Maruti Suzuki has entered the field. On November 23, Maruti Suzuki and Toyota Tsusho Group announced commencement of operations at their vehicle dismantling and recycling JV – Maruti Suzuki Toyotsu India – at Noida in Uttar Pradesh. It has a scrapping capacity of 2,000 units a month or 24,000 units annually and processing time or scrappage time for a single car is 200 minutes.
India, which is among the top five polluting countries, is home to six of the top 10 polluting cities worldwide. With vehicular pollution contributing nearly 15-30% (PM2.5 and PM10 level) especially in cities such as Mumbai and Delhi, it is expected vehicle scrapping facilities will help take off ageing and polluting vehicles off the road at a faster pace and also give a fillip to new vehicle sales.
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