Vehicle recycling centers await clarity on scrappage policy

By 2025, the number of end-of-life vehicles (ELVs) is expected to increase by a whopping 250 percent and is touted to be over 21.8 million from 8.7 million ELVs that were reported in 2015. Despite a constant rise in these numbers, India, currently lacks presence of formal vehicle recycling centers, and continues to be completely dependent on smaller, semi-formal units that are known to deploy unhealthy methods of dismantling and recycling of vehicles. As the number of ELVs is expected to increase significantly, the industry is awaiting clarity on various aspects of India’s long-pending vehicle scrapping policy, which will pave the way for organized vehicle recycling centers. TURN OF SPEED spoke with industry experts for more clarity on the existing scenario and the need for a policy for successful implementation of scrapping centers in India.  ELVs refer to those vehicles that have come to the end-of-life due to wear and tear or due to unnatural reasons such as accident, fire, flood or vandalism. Once damaged, most ELVs end up in a scrap yard/informal recycling center, which have been around for decades, across various metros and towns in India. According to a report released by Automotive Recyclers Association in 2012, “more than 1,00,000