The End-of-Life Vehicle Challenge: My Enduring Call for a Holistic Recycling Policy
The recent report from SIAM, highlighting the urgent need for a supportive policy to scrap two crore vehicles nearing their end-of-life, resonates deeply with concerns I've expressed for years. The Centre for Science and Environment (CSE) further amplifies this, projecting that by 2025, India will grapple with over 2 crore old vehicles, posing significant environmental and pollution challenges India will have over 2 crore end-of-life vehicles by 2025: Report. This is a critical moment for our nation, demanding not just action, but a strategically integrated approach.
I remember years ago, as far back as 2019, I began advocating for a comprehensive approach to vehicle scrapping, even suggesting we rename it a Vehicle Recycle Policy Rename it , “ Vehicle Recycle Policy “. My vision was clear: to transform what could be a massive waste problem into a significant economic and environmental opportunity. I repeatedly emphasized the need for policies that would make India self-sufficient in scrapped steel and even explored a Swiss Challenge Solution for scrapping old vehicles Scrapping Old Vehicles : Swiss Challenge Solution.
The core idea I had brought up years ago was this: we needed to recognize the value in end-of-life vehicles, not just as junk, but as a rich source of raw materials. I had highlighted how a robust scrapping ecosystem would provide a crucial raw material backbone for our steel industry, ensuring a steady supply of steel scrap at low input costs. This, in turn, would reduce our reliance on coking coal imports and foster 'green steel' production FDI (automatic route) in Car Breaking Units. I even outlined specific benefits, such as job retention for millions in the auto component industry and substantial cost reduction for Indian steel manufacturing Car Grave Yard of World.
Reflecting on it today, I feel a sense of validation seeing how pertinent those earlier insights still are. The EY report on India's coking coal strategy, which details the steel sector's significant contribution to greenhouse gas emissions and the growing need for cleaner production technologies like increased scrap recycling, strongly echoes my long-held perspectives India’s coking coal strategy: Building resilience through innovation, sustainability and policy.
More recently, when India moved towards a zero-for-zero tariff arrangement on steel auto parts from the US, I reflected on how this perfectly dovetailed with my earlier vision for promoting FDI in car-breaking units and simplifying GST on salvaged materials India offers Zero for tariffs on steel auto parts, pharmaceuticals from the US. This initiative, combined with the government's Automotive Mission Plan 2016-26 and the scrappage policy, as noted by IBEF, points towards a more integrated and forward-thinking approach for the automobile industry India's Automobile Industry: Growth & Trends.
My advocacy for repurposing Alang, the ship-breaking hub, into a major center for vehicle recycling, aiming to contribute to India's vehicle scrapping policy and green steel production, is also bearing fruit. It's inspiring to see these ideas taking root and shaping sustainable practices Such thing as Green Steel.
The CSE report rightly points out that linking scrappage incentives with electric vehicles is crucial to maximize environmental gains, a solution I had already proposed at the time. It also emphasizes the need for strengthening scrappage infrastructure and integrating the informal sector – areas I’ve highlighted as vital for a truly circular economy India will have over 2 crore end-of-life vehicles by 2025: Report.
Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, I feel a renewed urgency to revisit those earlier ideas. We need to ensure that the policy frameworks not only address the immediate challenge of end-of-life vehicles but also unlock the full potential for green recovery, job creation, and sustainable industrial growth, particularly in steel manufacturing and the burgeoning EV sector. This requires robust FDI in recycling, streamlined processes, minimal duties on salvaged materials, and continuous skill development to modernize our workforce for these new opportunities.
Regards,
Hemen Parekh
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