Context :
Alang
set to become the junkyard of old vehicles, too { Business
Line – 12 Dec 2020 }
Extract :
Ø Alang, where ships finally call to be broken
up, may soon become the hub for
scrapping old vehicles, too. The
government is weighing a plan to dismantle
and recycle end-of-life vehicles at
this port town in Gujarat’s Bhavnagar district.
Ø An inter-ministerial panel exploring the
possibility of junking vehicles at Alang, following a presentation made to
Prime Minister Narendra Modi for drafting a scrapping policy, has finalised its
report, multiple government officials said.
Ø The government’s policy managers feel the plan
would maximise Alang’s recycling
potential and help use the cheap scrap steel
extracted as an input for the manufacturing sector, the sources said
Ø The move comes as steelmakers such as Tata
Steel and the Liberty Group are looking to enter the scrap recycling segment. Tata Steel has already set up a recycling plant in Rohtak,
Haryana
Ø The Ship
Recycling Industries Association (SRIA) has backed the plan as this can double
the steel scrap output to 5
million light displacement tonnage (LDT) from the present 2 million LDT.
Ø The association has made two suggestions to
overcome the limitation of the small size of ship recycling plots.
“Every plot holder should be allotted a backyard plot of 10,000 sq
metres at nominal cost on a 99-year
“If the
backyard plot is allotted, we will set up shredders and other
equipment for recycling of vehicles at our own cost,” he said.
Ø Second, the association wants the recycling yards to be converted into an autonomous
body under the National Authority for Recycling of
Ships set up by the Shipping Ministry. This will solve the problem of multiple
agencies operating at Alang which delays finalisation of issues relating to the
industry, the SRIA official said.
Ø An official at the Bureau of Indian Standards
said that it would consult the Metallurgy Department for modification/reform of
existing standards to enable re-rolling mills manufacture TOR steel — one of the
best grades of steel used in concrete
reinforcement — of more than 8-mm
thickness.
Ø The Central Pollution Control Board issued
guidelines in April 2019 for environmentally sound management of collection, dismantling and shredding end-of-life
vehicles
===================================================
Shri Nitin Gadkariji { Transport
Minister / nitin.gadkari@nic.in / email@nitingadkari.org }
Shri Mansukh Mandaviya { Shipping Minister / minister-shipping@gov.in }
Dr Sanjeev Ranjan { Secretary – Shipping / secyship@nic.in
}
Dear Policy Makers,
At the outset, Congratulations for incorporating my following
suggestion in the draft of VEHICLE SCRAPPING POLICY
In respect of scrapping of old vehicles , I had sent following messages in Feb 2018 :
“ I urge our Policy Makers / PM-EAC
/ NITI Aayog / Industry Associations ( ASSOCHAM – FICCI – CII - SIAM
– ACMA ) to consider my suggestion “
That suggestion was :
Extract [ Pl do read full
proposal at above-mentioned link ] :
Ø
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 !
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 “
Ø
Set up 100 Alang type
“ CAR GRAVE YARDS “ all along
the vast Indian coast , as part of already announced Coastal Economic Zones
(CEZs), Coastal Economic Units (CEUs) and Port-Linked Industrial Clusters ( Source : http://sagarmala.gov.in/project/port-led-industrialization )
Ø
Each Car Grave Yard to house 100 Car Braking Units ( total of 10,000 units )
Ø
Each unit would have (
mandated ) minimum scrapping capacity of 5,000 vehicles
per year, aggregating 50 million vehicles per year ( our 25 %
market share )
Ø
“ Break In India “ must find meticulous /
detailed, implementation schedule in :
# EV Road Map (
Policy Document awaiting Cabinet approval )
# Automotive
Mission Plan 2016-26 (
AMP 2026 )
Ø
Exempt CAR BREAK
YARDS from payment of Corporate Income Tax for next 20 years
Ø
Encourage existing Auto Components units to set up such “ Car Break Yards “ by
offering to them , free land ( in those CEZ ) and free electricity
Ø
From world over, encourage “ Cars to be
Scrapped “ to get loaded onto “ Ships to be Scrapped “ and brought
to these CEZ .
Ø
After unloading, those ships to be re-directed to Alang !
Ø
Foreign Ship Owners can make money ( by hauling cars to India
), even in the last journey !
Ø
Permit 100 % FDI ( automatic route ) in Car Breaking Units . This will help
bring latest technology, safer working conditions and high productivity . It will also raise the
wage levels
Ø
There should be no “ Import Duty / Customs Duty “ on cars imported for
breaking
Ø
GST on sale ( domestic or export ) of salvaged materials should
be only 5 %
BENEFITS :
Ø
25 million persons currently employed by Auto Component Industry will be able to
retain their jobs ( - of course , they must agree to be re-trained / re-skilled
, in order to save their jobs )
Ø
Cost of our STEEL MANUFACTURING by Indian Steel plants will go
down since they will get 45 Million tons of Steel scrap ( from
those 50 million cars ) at very low input cost
Ø
The price of iron and steel has increased from
Rs 30,000 per tonne 6 months ago to about Rs 48,000 to Rs 50,000 per tonne
today without any such steep hike in input costs.
=================================================
References :
http://www.alangtoday.com/ship-recyclers-directories.aspx
info@alanginfo.com
/ sales@alanginfo.com
International Ship Recycling Association
chairman@isranetwork.com /
secretariat@isranetwork.com
reinoud.pijpers@isranetwork.com
natasja.martin@isranetwork.com
===================================================
List of other E Mails on
the same subject ( sent to Cabinet Ministers / NITI Aayog etc ) :