Thanks Shri Gadkariji ,
For taking
cognizance of my suggestions re Vehicle Scrapping
Context :
Extract :
The government is working towards making India a global automobile manufacturing hub and the domestic
industry is expected to be worth Rs 15 lakh crore in the near term, Union
Minister Nitin Gadkari said on
Tuesday.
Virtually inaugurating Tata Motor's vehicle scrapping facility
in Jaipur, Gadkari said the automobile sector currently
contributes to 7.1 per cent of the nation's GDP with the industry size at
around Rs 7.8 lakh crore.
"The auto
sector gives direct and indirect employment to around 4 crore
people and this number is expected to grow to 5 crore by 2025. I am working
with a target to make India number one global automobile manufacturing hub and
to take its size to Rs 15 lakh crore in the near future," he noted.
Gadkari noted that the scrappage policy enables removal of older and unfit vehicles
and introduction of new
lesser polluting vehicles in a phased
manner.
"It is estimated that the
automotive demand generated by the scrapping policy will lead to additional GST
revenue of Rs 40,000 crore to the government and the raw material cost for new cars will go down by 30
per cent," he stated.
He noted that the country currently
imports 8 million tonnes of scrapped steel annually.
"About 50-60 scrapping centres can bring down demand for imports of steel
scrap making India self reliant," the minister said.
He added that vehicle scrapping would help in establishing an organised industry thereby enabling new employment opportunities.
"My
aim is to develop a scrapping centre within a reach of 150 kilometres from all the city centres," Gadkari said, adding that India could become a scrapping hub for the entire South East Asia.
"We
can establish automobile clusters in the port areas... ultimately, it is a win-win
situation for all stakeholders," Gadkari said.
Context :
PM: Govt to scrap 3L old vehicles, 3,000cr
earmarked in Budget …………………………. TOI / 24
Feb 2023
Extract :
Prime
Minister Narendra Modi on Thursday said around
3 lakh old vehicles of the central and state
government would be scrapped under the vehicle scrapping policy
PM said, “ These vehicles are more than 15 year old and include vehicles used by the police, especially the ambulances in our hospitals and the buses in our public transport.
Vehicle scrapping is going to become a huge market
for all of you.
Centre
pushes for Alang to emerge as vehicle scrappage hub BL -
03 Mar 2023
Extract
:
As
ship-breaking activity at Alang witnesses a slowdown,
the Centre has asked the Gujarat Maritime Board and the Department of Ports and
Transport of the State government to come out with “necessary orders” and
standard operating procedures to explore the possibility of
allowing the existing yards to double up as vehicle scrapping units.
Alang, in the
Bhvanagar district of Gujarat, is considered to be the largest ship breaking
yard in Asia; and there has been a push from the Centre to expand its usage for vehicle scrapping or recycling.
“(The)
SRIA (Ship Recycling Industries Association – India) has raised an issue to allow existing ship recycling yards to
also disintegrate old vehicles under Vehicle Recycling / Scrapping Policy
of Gujarat.
It was
decided that necessary orders and SOP will be issued by Gujarat Maritime Board
/ Ports & Transport Department,” the minutes of the meeting held earlier
this year read.
In the ship recycling / breaking business, vehicle scrapping is seen
as a natural extension
Apart from
senior officials of the Union Ministry of Ports, Shipping and Waterways and
representatives of the Gujarat Maritime Board and Ship Recycling Industries
Association (India), the January meeting was chaired by one of the Union
Ministers.
It was also decided at the meeting that a BIS team shall visit Alang – the country’s largest ship
breaking centre - to study the ground activity of the Ship Recycling.
As per data available from the Gujarat Maritime Board in Alang,
the number of ships broken in the yards have plunged to one of the lowest since
FY12.
Ship breaking activity was one of the highest in FY12 with 415
ships coming in. But activities have since then dropped. FY21, being a Covid year,
was one of the worst with just 187
ships being broken.
Numbers
improved slightly in FY22, with 209 ships coming in.
Till December 31 of this fiscal, ship breaking activity at Alang
was 91 only.
In light displacement tonnage (calculated in million tonnes),
numbers dropped from 3.9 mt in FY12 to 1.5 mt in FY22. In FY23 (till Dec) it
was 0.9 mt.
================================================MY TAKE :
Ø Car
Grave-Yard of World ? ………………………………… 14 Feb 2018
Extract :
But , if entire World wants to switch over to Electric Vehicles in nest 20 years, then
the number of Petrol – Diesel vehicles to be scrapped could well be 200 Million
per year !
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 )
Car scrap/recycle yards around the World, just do not have the capacity to scrap /
recycle 200 Million vehicles per year ( - a 7 FOLD jump from current 30 million )
In any case , car scraping / recycling is considered a “ dirty business “ in
developed countries
In developed countries , labour costs are very high ( as much as 20 – 30 times of
prevalent labour costs in developing countries ), making this industry , a “ high
cost “ industry
Take the example of ALANG SHIP BREAKING YARD in Gujarat , with following
figures :
WHAT SHOULD BE THE NEXT STEP
?
Start a
new initiative called “ Break In India “
Set up 100 Alang type “ CAR GRAVE YARDS “ all
along the vast Indian coast
Each Car Grave Yard to house 100 Car Braking Units (
total of 10,000 units )
Each unit would have ( mandated ) minimum
scrapping capacity of 5,000 vehicles per year ,
aggregating 50
market share )
With Regard,
Hemen Parekh
www.hemenparekh.ai /
03 March 2023
Related Readings :
Nitin
Gadkari : looks far into Future and dreams Big ………[19 Sept 2022 ]
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 ]
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