Mahindra, MSTC ink agreement for setting up auto shredding and recycling plant in India

<p>India's Mahindra Intertrade, a part of the diversified Mahindra Group has inked an agreement with the State-run metal scrap trading firm MSTC for setting up an auto shredding and recycling plant in the country. The JV agreement was inked in presence of Steel Minister Chaudhary Birender Singh and Steel Secretary Aruna Sharma. <br /><br />The idea behind the joint venture (JV) is to meet India&rsquo;s annual scrap requirement of 5-6 million tonnes (MT), which at present is done through imports. The market is estimated to be in the range of $ 1.8 billion (about INR 12,000 crore). <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Auto%20Shredding%20plant.jpg" alt="News" width="800" height="516" /><br /><br />Speaking to reporters, MSTC CMD B B Singh said: &ldquo;India&rsquo;s demand for vehicles stood at 23.34 million in 2015. It brings to fore the issue relating to scrapping of end of life vehicles (ELVs) and when you consider all these points, this JV has immense potential for further growth.&rdquo; <br /><br />This first-of-its-kind in auto shredding facility will establish an automotive recycling capability for ELVs from collection, compaction, transportation, depollution, dismantling, shredding, recycling, and disposal, Mahindra Intertrade Managing Director Sumit Issar said. <br /><br />Scrapping old vehicles will help recover significant amounts of steel scrap, aluminium scrap, plastic and rubber. Locally available scrap would help reduce the cost of production of secondary metal makers, while hi&mdash;tech shredding using better technology and machinery would help the country significantly reduce pollution, Issar said.</p>