Vehicle scrappage policy to boost metal recycling biz

The recently announced vehicle scrappage policy is likely to give a major boost to the metal recycling business, said Grant Thornton Bharat. Accordingly, in a report, Grant Thornton Bharat said that the policy is likely to affect major changes in the Indian automotive industry.

"Be it generating employment, reducing pollution, or accelerating demands for electric vehicles, the policy proves to be a win-win situation for the auto industry and various other stakeholders," the report said.

The policy mandates that passenger vehicles older than 15 years and commercial vehicles older than 20 years will have to be scrapped mandatorily if they fail fitness and emission tests. Moreover, the policy is likely to positively impact the sales of new cars and pave way for more opportunities for the Indian auto sector.

"One of the key opportunities that will emerge from the vehicle scrappage policy will be for the metal recycling business. It will also to an extent reduce the cost of production. Steel is a crucial component for automobile manufacturers, and its price has been growing up to almost 30 per cent in the last six months," said Saket Mehra, Partner and Automotive Sector Leader, Grant Thornton Bharat.