Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 2 March 2023

India to become Vehicle Scrapping Hub ?

 


 

Thanks Shri Gadkariji ,

 

For taking cognizance of my suggestions re Vehicle Scrapping

 

Context :

Nitin Gadkari: India to become global leader in automobile manufacturing with ‘Make-in-India’ initiative

 

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 million vehicles per year ( our 25 %

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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