Nitin Gadkari : looks far into Future and dreams Big

 

 

Context :

Ø  Government to develop 3 vehicle scrapping facilities in every district …………[  ET – 14 Sept 2022 ]

 

Extract :

Road Transport and Highways Minister Nitin Gadkari on Wednesday said that the Centre is planning to develop at least three registered vehicle scrapping facilities in every district across the country.

"In every district, we can open 3 registered vehicle scrapping facilities," he said.

 

It will take an investment of Rs 35-40 crore

 

We already have some 10-12 units operational “

 

Gadkari noted that the country has 1.02 crore vehicles that need to be scrapped as per the Vahaan record

 

 

PM Modi had launched the National Vehicle Scrappage Policy in August last year and had said it will help phase out unfit and polluting vehicles and also promote a circular economy.

Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

The vehicle scrappage policy came into effect on April 1, 2022.

Announced in the Union Budget 2021-22, the policy provides for fitness tests after 20 years for personal vehicles, while commercial vehicles will require it after the completion of 15 years.

 

FROM ET PRINT VERSION ( 14 Sept 2022 ) :

Gadkari pointed out that environment ministry had permitted imports of WASTE TYRES from the WORLD

That rubber powder is being used in rubberized bitumen and adding up to 10 %  

 

Government Aims To Set Up Vehicle Scrapping Facility Within 150 Km Of Each City   [  NDTV – 07 May 2022 ]

Extract :

Developing a large number of vehicle scrapping centres, we can also develop multiple authorised collection centres of vehicle scrapping units in one city, which will have the authority to deregister a vehicle and issue deposit certificates," he said.

He had also said that the material recycling sector gives direct and indirect employment to 4 crore people and this number is expected to go up to 5 crore by 2025.

At Friday's event Mr Gadkari said:

"India has potential to become a vehicle scrapping hub of the entire South Asian region.

We can import a large number of old vehicles from Bangladesh, Bhutan, Myanmar, Maldives, Nepal and Sri Lanka for scrapping in our country."

The minister also observed that there is a challenge to establish a circular economy to recover maximum value from the scrap or end-of-life vehicles.

"The technology used for scrapping will be the game changer in deciding the economics of scrapping and recycling," he said, adding that the equipment can be installed at the scrapping unit to maximise raw material extraction or dismantling equipment.

 

Nitin Gadkari looks at tax sops for those scrapping old CVs    /   ET  /  16 Sept 2022

 

Extract

 

Minister for road, transport and highways Nitin Gadkari said he has consulted with the minister for steel, Jyotiraditya Scindia, regarding putting forth a proposal to the finance ministry to consider some concession in GST rates for those purchasing new commercial vehicles, after scrapping old ones.

“ The pollution from one old truck is equal to the pollution of 15 new trucks, so it is imperative we scrap them. I request vehicle makers to offer a discount to a buyer who has a scrappage certificate “, said Gadkari

Gadkari said overall 10 million vehicles are scrappage worthy.

“ There is a potential of using copper, aluminium , steel, and rubber scrap, recycling them and using it for self consumption, which can save cost by 30 % “ , he said  

 

 MY  TAKE :

Ø  In India, we have 780 districts 

Ø  Hence, as per Shri Gadkariji, we require to set up 2,340 Vehicle Scrapping units

Ø  Average processing / installed capacity of a Vehicle Scrapping Unit = 30,000 / year

Ø  Hence, existing 12 units could scrap : 12x30,000 = 3.6 lakh vehicles in ONE YEAR

Ø  As per Shri Gadkariji, some 1.02 crore ( 102 lakh ) old vehicles need immediate scrapping

Ø  Hence, if no more units get added, then it will take 28 YEARS for existing 12 units ! Hence the urgency to set up many more units, in a hurry

But, Shri Gadkariji is talking of 2340 units ( of course, that may take 10 years )

Question :

Will there be enough OLD vehicles available to keep all of these 2340 units

 occupied round the year ?

Their combined ANNUAL processing capacity could be : 2340 x 30,000 =

 70,200,000 [ 70 Million ] – of course, after 10 years ( even if all 2340 do come

 up ) – far in excess of our local domestic market

 

Apparently Shri Gadkari seems to have read my following earlier e-mails, where I

 suggested :

#  Alang : Junkyard ? Scrapyard ? SaveYard ?................ [ 12 Dec 2020 ]

 

Extract :

Ø  Treat the entire world’s need ( for scrapping old ICE vehicles ) as our market

 

Ø  If entire World wants to switch over to Electric Vehicles in next 20 years, then the

 number of Petrol – Diesel vehicles to be scrapped could well be 200  Million per

 year !

 

Ø  Of this, India should target to capture a 25 % market share, at 50 million vehicles

 per year ( inclusive of scrapping of our own old vehicles )

 

Ø  In India alone, that figure could be as high as 20  Million per year for next 20

 years ( - as compared to current level of 4 million ) !

 

Ø  Start a new initiative called “  Break  In  India “

 

 #   Car Grave-Yard of World ? …………………………………[ 14 Feb 2018 ]

Extract :

Countries all around the World, are in the process of phasing out Petrol-Diesel

 vehicles and switching over to Electric vehicles

 

Here are the target dates ( for change-over ) set , for some of the countries :

 

·         UK………………. 2040

 

·         Scotland…….. 2032

 

·         France………..  2040

 

·         Norway……….  2025

 

·         Austria……….   2025

 

·         Netherlands.   2030

 

·         China……….     2030

 

·         Finland…….     2030

 

·         India……….      2030

 

 

HOW  MANY  NON-EV  GET  SCRAPPED  NOW  EACH  YEAR  ?

 

      USA ………………………………… 15  million

 

·         Europe…………………………..    9  million

 

·         Japan……………………………..   6  million

 

·         China……………………… ……..   6  million

 

 

·         Developed Countries……….. 30  million ( generating 27 million tons of scrap )

 

 

·         India………………………………..   4  million

 

Dear Nitinbhai,

Both , on East and West, India has a huge 15,200 km coast-line with 15 major

and 180 intermediate / minor ports ,

I urge you to plan for setting-up Vehicle Scrapping Units near these ports to

handle every year, 50 million old vehicles arriving from all over the World, as

suggested in my above-mentioned e-mails

 

With regards,

Hemen Parekh

hcp@RecruitGuru.com  /  20 Sept 2922

 

 

Related Readings :

 

Guide to start Authorized Vehicle Scrapping / Re-cycling Facility in India  

Mahindra Cero to set up four more vehicle scrapping units in Maharashtra  [  21 Dec 2021 ]

 

Earlier Blogs / E Mails On Vehicle Scrapping :

2016

Ø  PIYUSH PLAN ?                                         …………….[ 27 Mar 2016 ]

Ø  Young or Old ?.................................................... [ 27 Aug 2016 ]

Ø  From OLD to NEW ? No , go NEWER !.................. [ 22 Sept 2016 ]

 

2018

Ø  Car Grave-Yard of World ? …………………………………………[ 14 Feb 2018 ]

Ø  One door closes ; Another opens …………………………….. [ 27 Feb 2018 ]

Ø  Mahindra Accelo : Saluting a pioneer………………………….[ 19 June 2018 ]

Ø  Scrapping Old Vehicles : Swiss Challenge Solution …..[ 24 July 2018 ]

Ø  Rename it , “ Vehicle Recycle Policy “ ………………………..[ 08 Aug 2018 ]

Ø  Better Late than Never !......................................... [ 01 Nov 2018 ]

Ø  Missing piece of Jigsaw Puzzle ? ………………………………….[ 15 Nov 2018 ]

 

2019

Ø  FAME II > FAME III > FAME IV……………………………………. [ 05 Mar 2019 ]

 

2020

Ø  I conceive , I conceive , I conceive !......................... [ 25 Feb 2020 ]

Ø  Dead on Arrival ? …………………………………………………………..[ 19 July 2020 ]

Ø  Alang : Junkyard ? Scrapyard ? SaveYard ?................ [ 12 Dec 2020 ]

 

2021

Ø  Vehicle Scrapping Policy  ........................................[ 03 Feb 2021 ]