SIAM debates sustainable mobility and ‘Vehicle Scrappage Policy 2021’

The apex automotive body, SIAM had organised a webinar on ‘Vehicle Scrappage Policy 2021: Its Features and Implementation Planning’. Divided into three sessions, the webinar touched on the key issue like policy framework, best practices in material recycling, Extended Producers Responsibility and models related to environmentally sound management of ELVs recycling including the roles and responsibilities of stakeholders to devise the roadmap of transitioning to a circular economy. 

In his welcome address, Prashant K Banerjee, Executive Director, SIAM, said, “We are pleased  that the implementation of scrappage policy will foster circular economy and help achieve  energy security, road safety, better environment and facilitate secondary material usage in  the system.” 

Shrikant Deshmukh, Chairman, SIAM Recycling & Materials Group and GM, Mercedes-Benz India gave a comparative perspective of EU directives for ELV recycling and highlighted Japan’s ELV recycling model. Elaborating upon the tremendous opportunity of ELV in India, he advocated the extended producer responsibility model and emphasized upon the importance of shared responsibility of all stakeholders including the Government.  

One of the key architects of the policy, Amit Varadan, Joint Secretary, Ministry of Road Transport & Highways and the Chief Guest, said, “The policy has the potential to generate 35000 jobs, while saving maintenance cost for customers and manufacturing cost for OEMs. From April 1 2023, the heavy commercial vehicles will be mandated to undergo test at authorised fitness testing center and the rest of the commercial  vehicles will be mandated to undergo test from August 1, 2023. We are proposing that 70- 100 fitness testing centres to be set-up all over the country.”  

While outlining the salient features of the Registered Vehicle Scrapping Facility, Paresh Goel, Director, Ministry of Road Transport & Highway, said that the  Vehicle Scrappage Policy is like the health policy for all 25 crore plus vehicles in the country.  

M S Anand Kumar, Co-Chairman, SIAM Recycling & Material Group and GM, TVS Motor added that the scrapping policy has potential to increase the material yield from ELVs, resulting in resource conversation and reduced landfills. With limited battery recycling facilities and the increase in the sales of EVs there would be enormous battery wastage and the policy will create online and offline market for recycling and sale of  certified use of parts. 

Masaru Akaishi, MD, Maruti Suzuki Toyotsu India pointed out that regulations should make all players follow proper system. He emphasised upon the role of incentives and disincentives to encourage the ELV user to dispose old car and take it to authorized dismantler. The domestic steel scrap generation will replace requirement for imported scrap and save resources.  

The replacement of old commercial vehicles will result in reduced fuel bills and will help in reducing pollution, says Som Kapoor, Partner (Automotive Sector), Ernst & Young. 

Meenakshi Sundaram, CTO, Amalgamations Component Group, added that, “Adopting  circular economy by recycling and re-using of automotive parts will lead to the creation of an  estimated 8 to 10 billion US dollar economy.”  

Anand Kumar, Additional Director, CPCB, shared with the industry various responsibilities  of producers under Battery (M&H) Rules, 2001, as amended in 2010. He discussed the applicable EPR framework under the plastic waste management rules and e-Waste  (Management) Rules 2016 and shared the collection targets therein. 

Sanjay Mehta, President, MRAI, said, “We require informal sector’s help on day-to-day basis as they have got better sources to procure the material. We need to give them support in terms of equipment, facilities and incentives and the government has to support in this matter.” 

In the panel discussion, co-existence of informal and formal sector was highlighted and  informed that multiple opportunity exists for private players to make the Indian Scrappage industry  organised, transparent and environment friendly.  

Experts deliberated upon various aspects of  ELV recycling and the webinar concluded with ideas and strategies for attaining  circular economy, sustainable mobility and sustainable development goals upto 2030.