The MSTI facility has been constructed by Maruti Suzuki and Toyota Tsusho Group and is the first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs). It can recycle 2,000 vehicles every month.
see photosMSTI Scraping Center is the first government approved scraping and recycling facility
Union Minister for Road Transport and Highways (MoRTH) Nitin Gadkari inaugurated the new Maruti Suzuki Toyotsu Vehicle scrapping facility in Noida. The MSTI plant has been constructed by Maruti Suzuki and Toyota Tsusho Group and is the first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs). The scrappage plant has been built with an investment of Rs 44 crore and is spread over an area of 10,993 square metres. It will be operated by Maruti Suzuki Toyotsu India Pvt. Ltd., as per the vehicle scrappage policy of the Central Government.
Read also: MoRTH releases list of incentives, incentives under vehicle scrapping policy
Union Minister Nitin Gadkari visits Maruti Suzuki Toyotsu Scraping Center in Noida
The scrappage plant has the capacity to scrap 2,000 vehicles per month and 24,000 vehicles annually. The company also revealed that it will take around 200 minutes or around 3.3 hours to completely scrap a vehicle. While this is the first government-approved scrappage facility, Union Minister Nitin Gadkari announced plans to add at least 200-300 such units in the next two years across the country. Gadkari further said that he expects the auto industry to grow by 10-12 per cent due to the new scrappage policy.
The new MSTI facility procures all its machines domestically. The plant follows eco-friendly scraping with zero discharge of oil and AC gases in land or air. It has up to 95 percent of radioactive material scanning and scrap recovery. This facility will also sell the recovered scrap only to authorized recyclers and smelters.
Gadkari said the new vehicle junk policy is expected to give a boost to the Indian auto sector by 10-12 per cent.
For the customer, scrapping an old vehicle will become easier with ELV scraping centers. Customers will get a certificate of dismantling which can be used for de-registration at the Regional Transport Office (RTO). The scraping facility also promises a transparent process and digital payments. Apart from this, while customers can waive their registration fee while buying a new vehicle, the government has also urged auto makers to incentivize buyers to encourage scrapping of used cars.
Speaking at the event, Gadkari said, “Scrappage policy will be one of the major factors to control pollution. Old cars pollute a lot more than new cars, so they need to be phased out. Old vehicles cause pollution which is a big problem. Scrapping is very important for the society. Economy. We will get all the raw materials at low cost by which we can reduce the cost of production.”
Gadkari further said, “The scrappage policy has the potential to reduce raw material cost by 33 per cent, generate incremental GST revenue on vehicle sales, which is around 30,00-40,00 crore for the government.”
Customers who scrap their old vehicles will get a certificate which will help in waiving off the registration fee on a new vehicle.
Speaking at the event, Kenichi Ayukawa, MD & CEO, Maruti Suzuki India Limited said, “Like many countries, we need a policy where vehicle fitness is checked every 3-4 years. We have to wait 15 days. Not needed. Years.”
Gadkari also talked about having at least 3-4 vehicle scraping centers in every district. “We expect fresh investments of over ₹10,000 crore in automotive fitness centers and scrapping centres. We should have at least 3-4 scrapping centers in every district. They can create new jobs,” he added.
This step will also boost the economy with more investment and employment opportunities in various districts. Elaborating further, Gadkari said, “The annual turnover of the auto sector is ₹7.5 lakh crore. The target is to take it to ₹15 lakh crore in 5 years. India’s target is net-zero emissions by 2070 and that’s a lot for us.” important. I believe the scrappage policy is one of the solutions.”
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The minister also urged the unorganized scrappage sector to take benefits under the Ministry of Micro, Small and Medium Enterprises (MSME) department and set up new scrapping centres.
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