Dear Shri Piyush Goyalji,

These days, you are fighting on two fronts, busy negotiating a BTA with the USA

and a FTA with the EU.

You have that 90 days window provided by USA before their enhanced tariff

become effective

In this context , I am urge you to revisit my following 2018 email :

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

In that mail, I had suggested to position India as a global scrap hub through a

dual scrapping strategy at Alang – simultaneous scrapping of “ End of life ( EoL )

“ ships and vehicles

Subsequent ( favourable ) developments, made me re-iterate my suggestion

through following emails :

Ø Alang : Junkyard ? Scrapyard ? SaveYard ? …………………. 12 Dec 2020

Ø India to become Vehicle Scrapping Hub ? ……………………… 02 Mar 2023

Fast forward to To-Day :

With Alang Ship-Scrapping Yard operating at a mere 25% capacity due to a shortage of old ships, and your recent emphasis on safeguarding national interests in trade negotiations, this approach — using old ships to transport end-of-life (EoL) vehicles for scrapping in India — aligns perfectly with your vision.

This "killing two birds with one stone" strategy can make scrap imports a pivotal negotiating point in BTAs with the USA and FTAs with the EU, especially amid global tariff dynamics.

Dual Scrapping Proposal

In 2018, I proposed making India the " Car Graveyard of the World " by importing 50 million EoL vehicles annually to meet domestic scrap needs.

My 2020 and 2023 Emails supported government plans to repurpose Alang for vehicle scrapping, as reported by Business Line ( December 12, 2020 / 03 Mar 2023 )

I urge once more that old ships—currently scarce—carry EoL vehicles to Alang, where both can be scrapped. This would:

Utilize Alang’s idle 75% capacity (3.375 million LDT out of 4.5 million annually), doubling scrap output to 5 million LDT, as endorsed by the Ship Recycling Industries Association (SRIA).
Reduce India’s 8 million ton steel scrap import dependency, saving $ 3-4 billion annually.
Offer USA and EU ship-owners and automakers a cost-effective disposal route, aligning with your " India First " approach.

Current Context :

On April 11, 2025, you emphasized that India will not negotiate trade deals "at gunpoint" and will protect national interests during the 90-day tariff pause with the USA, aiming for a win-win interim deal by fall 2025 to double trade to $ 500 billion by 2030.

Similarly, you highlighted concerns over EU non-tariff barriers and climate regulations, urging a rethink to enable FTAs, as noted on April 11, 2025.

This dual scrapping strategy leverages these dynamics, offering a solution to USA/EU disposal challenges while boosting India’s scrap self-sufficiency.

Cost Per Ton of Scrap : India vs. USA/EU

India's cost advantage supports your trade strategy:

USA/EU Scrapping Industry :

USA scrap costs reach $ 200-300/ton for EoL vehicles, with EU-certified ship scrapping at $100-200/ton, escalating to $ 400+ / ton with compliance.

Indian Scrapping Industry :

At Alang, ship scrap hit $ 400/ton in 2020, with vehicle scrapping at $ 150-200/ton. Dual scrapping could lower this to $120-150/ton, offering a 50-70% cost edge.

Relevance :

This aligns with your focus on reducing import dependency, as India’s exports (a small GDP percentage) and import reliance were evident during COVID, yet a trade surplus emerged.

Scrap Imports as a BTA/FTA Negotiating Point

This strategy resonates with your trade philosophy:

1. USA BTA Leverage :

The 90-day tariff pause (April 11, 2025) offers a window to negotiate duty-free EoL imports, using Alang’s 2-3 million LDT capacity to attract USA assets. This supports your interim deal goal, countering Trump’s tariffs while protecting Indian interests.

2. EU FTA Leverage :

Your concern over EU non-tariff barriers (April 11, 2025) suggests a need for mutual benefits. Offering to absorb EU EoL ships and vehicles could ease their regulatory burdens, facilitating an FTA while India gains scrap, aligning with your call for balanced agreements.

3. Trade War Resilience :

As you noted, India’s growth story remains intact despite global tariffs. This strategy could secure BTAs / FTAs, offsetting EU / China retaliation risks.

4. Policy Alignment :

My "Break in India" vision (100 Alang-type yards scrapping 50 million vehicles) supports Shri Gadkariji’s 30 % raw material cost reduction and your Viksit Bharat 2047 pathway.

Critical Examination

While your trade stance prioritizes national interest, challenges remain. Logistical hurdles (e.g., loading vehicles onto ships) and environmental risks (e.g., toxic waste) require CPCB upgrades. Subsidized competitors and EU resistance to rethinking non-tariff barriers could complicate negotiations—issues you’ve flagged as hurdles. Yet, India’s scale and cost advantage, as you’ve championed, could prevail with strategic BTAs/FTAs.

Recommendation

I urge the Ministry to:

Pilot dual scrapping at Alang, targeting 1 million LDT of combined scrap in 2025, using SRIA’s backyard plot model.
Negotiate USA BTA terms during the 90-day pause, offering duty-free EoL imports for trade concessions, aligning with your interim deal timeline.
Address EU non-tariff barriers by proposing EoL absorption as a mutual benefit, facilitating an FTA per your balanced approach.
Upgrade Alang’s infrastructure and align with BIS standards, supporting your export-led growth vision.

Shri Goyalji,

This dual scrapping strategy, reinforced by your trade principles, could turn Alang’s crisis into a global trade triumph.

With regards,

Hemen Parekh

www.HemenParekh.ai / www.My-Teacher.in / 12 April 2025

Evaluation of end-of-life vehicle recycling system in India in responding to the sustainability paradigm: an explorative study

‘Can’t compromise national interest for US trade deal deadline,' says Union minister .. 11 April 2025

Extract :

"There'll be two areas on which the European Union will have to rethink. One is these non-trade issues with the seek to superimpose into trade agenda.

Unless they get that out of their system and the European Commission will need to reflect on it, they'll find it very difficult to get a trade agreement with anybody whatsoever.

Any self-respecting decent country cannot sign up on commitments which are irrational beyond the realm of trade and where.

The rest of the world has been responsible for the problem in the first place and has sought to be put on our head as if it's our responsibility to resolve," he said, stressing upon Europe's climate regulations

Friday, 11 April 2025

Dear Shri Goyalji : Here is your TRUMP card !