Mahindra Intertrade, MSTC enter into joint venture agreement to establish integrated auto shredding facility

The joint venture agreement was signed under the aegis of the Minister of Steel and Mines Chaudhary Birender Singh.

This auto shredding facility will establish an integrated automotive recycling capability for end of life vehicles - from collection, compaction, transportation, depollution, dismantling, shredding, recycling, and disposal.

B. B. Singh, Chairman & Managing Director, MSTC Ltd. said, “India does not have any modern auto shredding plant as of now. MSTC-MIL will have a good partnership going ahead. We are sure of setting up a world class facility which will go a long way in recycling of ELVs and reduce dependence on mining iron ore and other resources."

"Apart from savings on forex as a result of import substitution of scrap, this JV would also contribute to India’s COP21 commitments,” said he.

“Mahindra is pleased to embark on this socially progressive initiative with MSTC, to ensure responsible recycling of automobiles in India," said Zhooben Bhiwandiwala, Managing Partner, Mahindra Partners.

"We are very encouraged by the support we have received from both the Central and State governments, through appropriate policy announcements,  and are  committed to establish  global standards for this critical industry, which  will transform the way automotive scrap is effectively recycled in a sustainable manner,"  Bhiwandiwala said.

According to Sumit Issar, Managing Director, Mahindra Intertrade Ltd., “Auto Recycling, if implemented as per global standards, is not only environment friendly but also saves energy costs and minimizes the reliance on alternate resources. Every tonne of new steel manufactured from scrap steel saves a substantial amount of iron ore, coal, electricity and limestone."

"This initiative would also lead to forex savings. Secondary steelmakers in India import more than 5 million tonnes of scrap a year for recycling into finished steel. The locally available scrap would help reduce their cost of production considerably, while hi-tech shredding using better technology and machinery would help the country significantly reduce pollution,” he said.