WELCOME DELEGATES AUTO SHREDDING IN INDIA

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1 WELCOME DELEGATES AUTO SHREDDING IN INDIA A Presentation By Shri B.B.SINGH(CMD, MSTC)

2 About MSTC Mini Ratna Category-I PSU under the administrative control of Ministry of Steel. Business Segments: e-commerce & Trading. Office Network of 4 Regional & Several Branch /Field Offices. Rs.26,363 Crore e-commerce business during Numero uno position in e-commerce with 500+ Principals and 50,000+ Buyers. Multiple dedicated e-commerce platforms.

PERFORMANCE AT A GLANCE E-COMMERCE TRADE TOTAL 30819 21751 25507 26883 19395 19953

3 PERFORMANCE AT A GLANCE E-COMMERCE TRADE TOTAL

4 Why Shred in India? India imports 5-6 million tons of Shredded Ferrous Scrap every year. While our Primary steel Production has increased leaps and bounds making India 3 rd largest producer of crude steel, our Secondary Steel Industry has grown at a slower pace. Secondary Steel which is essentially a recycling process suffers from the lack of Raw Materials, and has to fulfill its needs through DRI and other routes leaving Scrap Recycling to small unorganized sector. 4 Organized shredding has the potential to recycle Shreddable goods in an environmentally friendly manner and providing much needed Raw Materials.

5 Material Sourcing Analysis: Illustrative Material availability analysis quantity (in,000 Units) Sourcing market F.Y.-15 Sourcing market F.Y.-21 estimate Two-wheelers Refrigerators Bus AC Cars 180 Two-wheelers Refrigerators Bus AC Cars

EUROPE: European Union is having an ELV directive in place. It brings together the producer, recycling industry, last holder and the authorities.

6 INTERNATIONAL SCENARIO.. Different countries have developed various ingenious methods of promoting recycling and have sustainable sources of Raw materials for steel. EUROPE: European Union is having an ELV directive in place. It brings together the producer, recycling industry, last holder and the authorities. US: US had developed in the year 2008 a car allowance rebate system or Cash for Clunkers -A Green initiative attempt to incentivize consumers for recycling their used vehicle. JAPAN: Follows EMIS (Electronic Manifest Info System). It also has a ELV recycling law implemented by JARC (Japan Automotive Recycling System).

steel is by far the most recycled item on the planet.

water; it also produces 76% fewer water pollutants, 86% fewer air pollutants and 97% less

Ensure that Scrap is segregated into metallic and non-metallic parts for better recovery

7 Why to Recycle and how? Metals can be recycled over and over again without losing their innate strength, therefore steel is by far the most recycled item on the planet. As per BIR, Steel recycling uses 74% less energy, 90% less virgin materials and 40% less water; it also produces 76% fewer water pollutants, 86% fewer air pollutants and 97% less mining waste. Ensure that Scrap is segregated into metallic and non-metallic parts for better recovery and hazardous wastes like oils, batteries, acids etc. are removed from the waste before it is shredded/melted. Secondary Steel producers should be encouraged and incentivized to use scrap instead of DRI.Import duty on metal scrap should be reduced so that recycling is promoted.

END OF LIFE VEHICLES (ELV s) The high maintenance and running cost, increased air and sound pollution, trifling mileage, lack of parking space and reduced safety cause these vehicles to become unfit

8 END OF LIFE VEHICLES (ELV s) The high maintenance and running cost, increased air and sound pollution, trifling mileage, lack of parking space and reduced safety cause these vehicles to become unfit for plying on roads. Natural ELVs: vehicles of pre Bharat-stage era. Premature ELVs: vehicles that have come to the end of their life for unnatural reasons such as accident, fire, flood, vandalism or damage.

18500 Value : Rs 2000 1995 Car Scrap Value: Rs 15000 Value : Rs 2500 Value : Rs 12000 Value : Rs 100 Value : Rs

9 18500 Value : Rs Car Scrap Value: Rs Value : Rs 2500 Value : Rs Value : Rs 100 Value : Rs 750 each Value : Depends on Usage of Technology Value : Rs 100 Value : Rs 600 Value : Rs 50 Value : Rs 150 9/10/16 9

of the total available scrap material it

composition of white goods Vehicles: 10-15

20% White goods: 7-10 years Plastics 19%

10 Material Composition Break-up Fluids 2% Others 2% Typical composition of a car Out of the total available scrap material it is assumed that roughly 70% reach scrap market Battery 1% Rubber 5% Plastics 9% Glass 3% Metal 78% Usage life Typical composition of white goods Vehicles: years End of Life Vehicles Other material 20% White goods: 7-10 years Plastics 19% Glass 2% Metal 59% White goods scrap Ac/Refrigerators 10

11 Metal Recycling in India Category Number Steel Scrap / Vehicle(kg) Total Steel Scrap content(tons) 2Wheelers 24,114, ,929, Private Vehicles 3,595, ,618, Commercial Vehicles 1,693,412 5,500 9,313, Wheelers 1,388, , ,792,425 Total 13,138, Million tons of Steel Scrap will be generated by scrapping Million vehicles tons of Scrap will produce 1 tons of fresh Steel. Therefore, Million tons of Scrap will produce Million tons of fresh Steel. Therefore Raw materials worth INR Cr and Forex worth INR 7600 Cr* (approx.) can be saved (source SIAM ). [*Updated as per SBB platts on 19/1/2016]

12 Estimated Raw Material Savings To produce fresh Steel through Recycling process Raw Material Quantity of Raw Material saved through recycling of Million tonnes of Auto Scrap (Mn Ton) Estimated Price of Raw Material (Rupees per Ton) Estimated Savings (Rupees Crores) Iron ore ,000 6,381 Coal ,000 9,408 Limestone ,500 1,477 Total 17,266 12

13 SHREDDING INCENTIVES BEING PLANNED IN INDIA Voluntary Vehicle Fleet Modernisation Plan(V-VMP):A proposed policy of GOI will have the following benefits: Scrap Value from old vehicles(4-5%). Financial Incentive of around 4% of vehicle cost. Automobile manufacturers special discounts (4-5%). The total benefit amounts to 12-14% of the cost of new vehicle.

National Green Tribunal Nodal Agencies for Implementing the Policy: Ministry of Road, Transport & Highways, Ministry of Heavy Industries, GARC, NATRIP, SIAM and MSTC

14 National Green Tribunal Nodal Agencies for Implementing the Policy: Ministry of Road, Transport & Highways, Ministry of Heavy Industries, GARC, NATRIP, SIAM and MSTC Limited. Source : Times of India OBJECTIVE: Reduction of number of end of life vehicles by compulsorily shredding for reduction in pollution and revival of Automobile sector.

15 Collection Centres & Shredding Plant Collection Units will act as a collection center for end of life vehicles. Shreddable parts will be sent to MSTC s Shredding Plant while Recoverable items will be kept in a store at the collection unit. The operation team at the collection center will dismantle the goods into Shreddable and non-shreddable parts. The non-shreddable parts like batteries etc will be further disposed via MSTC s e-auction portal. Owner Will be compensated by MSTC in the form of Cheque + Certificate of Shredding MSTC Will be responsible of primary collection of vehicles for environment friendly shredding and payment to Owners. Create a MIS portal where digital evidence in the form of Photographs of Engine Plate and Chassis will be available as legal record. MIS portal will also be accessible to Government agencies like Police, Customs, Insurance etc. to input the details of impounded vehicles.

16 Collection Centers(Modus Operandi)

17 Typical flow of a vehicles recycling process: 1. Collection & Certification End-of-life vehicle, ELV, collection centre. Issuing of a certificate of destruction and deregistration to the owner.

18 2. Upstream process : Depollution & Dismantling Depollution: battery, tires, liquids (brake fluid, fuel, oil, coolant, washer fluid, refrigerant fluid). Waste resulting from the depollution to be recycled as per norms. Dismantling of parts for reuse

19 3. Upstream process :Recover parts & Compact Reselling of reusable parts to private individuals or professionals Compaction of the depolluted ELV

20 4. Shredding & Sorting Process: Shred and Sort. Transfer of the hulk to shredder. Sorting of materials after shredding

21 5. Sorting & Reselling: Sort & resell shredded scrap Sorting of metallic materials: 75% of a vehicle is metallic Sorting of plastic materials: 20% of a vehicle is plastic Reselling of materials for recycling or energy recovery

22 Auto Shredding: A Pan India Vision 9 Imports Substitution Shredded Scrap: 5-6 Million tonnes average yearly imports Plants Over 100 Shredding Plants with a capacity of 100,000 MT/year needed. 14

ESM OF ELVs uidelines for Environmentally Sound Management of ELVs Proper management, treatment and disposal of vehicles at the end of their life have become a pressing problem for India.

23 ESM OF ELVs uidelines for Environmentally Sound Management of ELVs Proper management, treatment and disposal of vehicles at the end of their life have become a pressing problem for India. Shared Responsibility involving all stakeholders the Government, manufacturers, recyclers, dealers, insurers and consumers. Recycle and Reuse as many parts as possible. Ensure minimal pollution due to plant operation. The aim to attain ZERO wastage should be there but proper disposal of ASR and e-waste, if any should be carried out.

Expected Benefits Of Shredding Environment Profitability

Auto-Grade Steel Direct: Preventing soil, water & air

Saving forex Generation Employment Better Tax collection

directly available in the country Re-melting of Auto

24 Expected Benefits Of Shredding Environment Profitability Availability of Shredded Scrap Production of Best Quality Auto-Grade Steel Direct: Preventing soil, water & air pollution Indirect: Saving Iron ore & Coal Make in India Saving forex Generation Employment Better Tax collection at source High grade Ferrous and Non-ferrous Scrap directly available in the country Re-melting of Auto grade steel scrap into Auto Grade Steel will lead better productivity.

The ultimate object is to Manufacture Steel such that total

produced at lowest possible expense while keeping the

The key to Swach Bharat and Digital India is to recycle and

25 The ultimate object is to Manufacture Steel such that total imports come down, total exports go up, more steel is produced at lowest possible expense while keeping the environment clean. The key to Swach Bharat and Digital India is to recycle and link recycling, manufacture and consumption electronically. Only then can we Progress and showcase that Progress 25

26 Signing of Joint Venture Agreement for First Auto Shredding Project in India between MSTC and Mahindra Intra-Trade Limited. Mahindra MSTC Recycling Private Ltd.

27 Thank You

Creating a Recycling Infrastructure for ELVs in India. Richard Paul Environmental Management Consultant Society of Automotive Engineers USA

Creating a Recycling Infrastructure for ELVs in India Richard Paul Environmental Management Consultant Society of Automotive Engineers USA Why the Automotive Industry Because, Needs to be Sustainable 1.