FW: INPUTS FOR VEHICLE SCRAPPING POLICY

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Wednesday, August 8, 2018 4:38 PM
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Subject: INPUTS FOR VEHICLE SCRAPPING POLICY

Rename it  , “  Vehicle  Recycle  Policy  “

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Following news appeared yesterday :

Vehicle scrap policy to see another round of consultations with stakeholders: Nitin Gadkari  

Highlight  :

The proposed policy for scrapping 20-year old commercial vehicles will go for another round of consultations with stakeholders as per the PMO directions, Union Minister Nitin Gadkari said today.

The proposal aims to pave the way for mandatory scrapping of such vehicles from April 1, 2020. 

He said that after "taking everyone's views" it will be sent back to the PMO for approval, he said 

Once the policy is approved, he said :

“ India could emerge as a hub for automobile manufacturing as key raw material available from scrapping like steel, aluminium and plastic are bound to be recycled, bringing down automobile prices by "20 to 30 per cent."

In May 2016, the government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off the road. 

Dear Shri Gadkariji,

I urge you to expedite the release of this policy in view of the following :

#   Old vehicles ( all BS IV  ) do not meet current emission standards and pollute the air

#   They also damage the roads and need heavy / frequent maintenance

#   They cause accidents due to failure of brakes etc

#  Each old car scrapped can yield approx. 0.9 tons of steel scrap

#  Let us assume that , out of those 28 million vehicles to be scrapped , some 20 million are

    Cars . These can yield 18 million tons of steel scrap

#  Steel scrap gets sold for Rs 25,000 per ton as against new CRCA sheets selling for Rs

    51,000 per ton

#  Using steel scrap as input raw material may bring down the cost of production of making

    new CRCA steel sheets and possibly, their prices might drop from Rs 51,000 to  Rs

    40,000 per ton( 25% drop  )

#   To make 1 ton of Steel , we need following inputs :

 Iron Ore…………….. 1,115  kg

Coal……………………..    625  kg

Lime Stone……………     53  kg

Energy………………….    642  Kwh

Oil………………………..     287  litre

    Imagine how much the country can save for 18 million tons of steel  ?

    On top of that there will be enormous saving of foreign exchange by not having to import

    that 6 / 8 million tons of steel scrap that our Steel Industry currently imports  !

I request you to refer to my following earlier emails on how we should go about framing up our ,

VEHICLE   RE-CYCLE   POLICY   :

 

PIYUSH PLAN  ?   ………………………………………… [  27  March  2016  ]

Retiring Old Vehicles - Gadkari Style ? ………. [  30  May   2016   ]

Young or Old ?  ………………………………………………[  27  Aug  2016    ]

From OLD to NEW ?  No , go NEWER !  ……….[  22  Sept   2016   ]

Building Castles in the Air ?   ………………………..[  12  March  2017  ]

Best out of a Bad Bargain ?  ………………………….[  29  March  2017  ]

Car Grave-Yard of World ?  ……………………………[    14  Feb  2018    ]

One door closes  ;  Another opens   ……………..[   27  Feb  2018     ]

Mahindra Accelo : Saluting a pioneer  …………..[  19  June  2018    ]

 

Scrapping Old Vehicles : Swiss Challenge Solution  [  24  July  2018  ]

 

08  Aug  2018

 

www.hemenparekh.in / blogs