Update on Draft proposal of Indian ELV - SIAM Recycling Task Force
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1 Update on Draft proposal of Indian ELV - SIAM Recycling Task Force 6 th SIAM -JAMA Meeting Tokyo, 30 Oct 2011 Mr. Assistant General Manager (R&D) Maruti Suzuki India Limited Society of Indian Automobile Manufacturers (SIAM), India 1
2 1. Background 1.1 Walk Thru Approach 2. Recycling Demo Unit Contents 2.1 Demo unit How it started? 2.2 Facilities of Demo Unit 2.3 Capability of Demo unit in Recycling Process 2.4 Output of Demo Unit 2.5 Key Learning from Demo Activity Other learning Dismantling Manual 3. Proposal on Indian Draft ELV regulation 3.1 Stages: Draft proposal of Indian ELV 3.2 Highlights of Indian Draft ELV proposal 3.3 Points under SIAM Task force deliberations 3.4 Common Database - IMDS 4. Challenges Ahead 2
3 1.Background 3
4 1.1 Walk Thru.. Study Phase SIAM hired consultants. SIAM Focus group for study. SIAM taskforce on Recycling formed. 1) Demo Unit Chairman: Capt Mohan Ram (TVS) & SIAM members Approached MOHI for need of Demo Unit. Working Phase 2) Regulation To prepare Draft ELV Regulation proposal for India. Current Practices of : 1) Vehicle scrapping 2) Fleet management policies 3) Recommendations of ELV policies. To establish : - Demo Unit for India - Processes for best practices for Dismantling To Propose : - Draft ELV Regulation - Recommendations to Govt. on ELV. 4
5 1.2 Approach.. SIAM Recycling Group Objectives. (1) Proposal for Establishing Recycling Demo unit Objectives of Demo Unit : i) Learning center for setting procedures to eco friendly dismantling. ii) Study center for business proposition from Authorized Dismantling / recycling. (2) Draft regulation proposal Of Indian ELV Objectives of Draft ELV : i) Propose Draft ELV based on 2000/53/EC & 2005/64/EC. ii) Propose recommendations for Accreditation of Dismantling / Recycling units. 5
6 2. Recycling Demo Unit 6
7 2.1 Demo unit How it started? Need for Demo Unit : To establish: 1) Learning center for safe dismantling of vehicles 2) Procedures for better recovery/recycling rate. 3) Center for Promoting business model for recycling. Location of Demo Unit: Chennai SIAM Initiative : Convinced Ministry of Heavy Industries (MoHI) - To set up Demo Unit (in GARC) - To fund for its facilities MoHI Funds Start of Demo Unit : Phase I - Learning Phase. Support from OEMs : Vehicles provided to Demo Unit (Voluntary support) ~ 25 four wheelers ~ 100 two wheelers OEM ELVs ELV Demo Unit Land NATRiP GARC Manpower NATRiP GARC 7
8 2.2 Facilities of Demo Unit Equipments currently available : - 4-post lift - Bailing press - Oil draining equipments - Gas cutters - Air compressor - Airbag deployment kit (by Volkswagen) Details of Demo Unit Building Size 35mX25m Dismantling Area 16mX7m Storage Area 16mX7m Dismantling Facilities for 2 & 4 wheelers 8
9 2.3 Capability of Demo unit in Recycling Process Demo Unit A Starting step for Recycling infrastructure in India Step-1 Dismantling Step-2 Recycling Step-3 Energy Recovery 1 Pre-treatment 4 Hulk 6 Incineration 2 Interior Dismantling 5 Metal / Non metal separation 7 Land filling 3 Body Pressing Bailing Press 9
10 2.4 Output of Demo Unit 1 Process Report A Certificate of Destruction Formats prepared B Vehicle Dismantling Report Dismantling Process followed at Demo unit 2 Business Proposition Recommendations - Investment requirement -Break even - Operating costs 3 Awareness Awareness Session to Stakeholders & outreach program (three times in a year) 1) Input for Next Phase of infrastructure : Shredding & Energy Recovery. 2) Establish processes / systems for better recovery / recycling rate. 3) Push for multiplication of Demo / business centers across India 10
11 2.5 Key Learning Dismantling Manual In Europe (actual scenario): - Dismantling Infrastructure available - Expertise of Dismantling available IDIS System based Dismantling info. is sufficient (for easy/ safe operation) Gap Bridge the gap by Dismantling manual Web based In India (actual scenario): - Dismantling Infrastructure unavailable - Expertise of Dismantling unavailable Dismantling information in printed document with more details. Simple solution is necessary : Printed Dismantling Manuals to suit Indian condition. 11
12 3.Proposal on draft Indian ELV regulation 12
13 3.1 Stages : Draft Proposal of Indian ELV Consisted 5 Parts : Draft-1 (June-2011) Part-1: Introduction, Objective, Scope and definition Prepared by GM Part-2 : Accreditation system for ATF, Collection and treatment of ELVs - Prepared by TVS Part-3: Collection and Treatment of ELVs Prepared by Tata, Mercedes & VW Consisted 2 Parts : Alpha : Accreditation system for ATF, Collection & treatment of ELVs Beta : Type approval for Recycle Reuse and Recovery & Heavy metal Ban Proposed to have 3 parts: Draft-2 (Aug-2011) Draft-2 (Oct-2011) Part-4: Recycling, Reuse and Recovery Targets Prepared by GM Part-5: Prevention / Heavy metal Ban Prepared by Maruti Suzuki Alpha : Accreditation system for ATF, Collection & treatment of ELVs Beta 1 : Heavy metal Ban Beta 2 : Type approval of RRR Latest Version Will be implemented After facility available 13
14 3.2 Highlights of Indian Draft ELV Proposal EU directives 2000/53/EC and 2005/64/EC were taken as base. Issues EU India Remarks Scope M1 & N1 Vehicles Proposal M1, N1 L1 & L2 India has huge market for 2 wheelers. N1 exemption : under SIAM Deliberation Part-marking Plastics, Elastomers & Rubbers Proposal: Only for plastic components Plan: Phase wise implementation. Extended Producers responsibility Yes Proposal: No Very difficult in Indian situation to monitor by OEMs Criteria for Extension No Proposal: Yes Recommendations from Ford, GM 14
15 3.3 Points Under SIAM Taskforce deliberation Scope Decision for exemption of N1 category ELV Definition of End-of-life vehicle in Indian context RRR targets Reuse-Recycle-Recover target values Old Vehicles Proposal for managing RRR for old vehicles (before regulation coming into force) unlike EU Timelines Timelines for facility installation & regulation implementation 15
16 3.4 Common Database IMDS Already Many companies are using IMDS in India. Draft proposal Regulation is neutral to Software. 16
17 4.Challenges Ahead 17
18 4. Implementing ELV Regulation - Issues Society Indian Customer Behavior : Not Willing to scrap old cars. (huge scope for used cars market) I&M procedure & facilities: Not strong. Checks & Penalties (insurance/road-tax) for non performing vehicle not in place Unlike other countries, Defining ELV Very important for successful implementation of this rule. Govt Centralized database of vehicle registration all over India. De-registration process: Currently not in the Provisions of Motor Vehicle Rules. No Department to handle ELV regulations as such. Many systems within Government need to be set up. Infrastructure Demo Unit First facility by Govt. Authorized units not in Place. Even scrap has positive value (no last owner will give ELV for free) Need to establish in phased manner based on learning from Demo Unit. 18
19 Thank You 19
20 4. Key observations during Recycling Activity.. OEM : To Identify ELV Logistics of ELV Dismantler : Handling ELV Issues: - How to decide ELV? - How to ensure proper dismantling? - How to ensure parts don t re enter spare part market? - How to ensure Confidentiality? Issues: - Who will bear logistics cost? - Difficult for OEM to handle ELV. - What should be the condition of Vehicles? Issues: - How to De register? - What procedures to be used for dismantling? - Documents to OEM after receipt of vehicles? 20
21 Proposal by VW 21
22 Proposal by GM / Ford 22
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