Scrappage policy to spur biz in Ludhiana

Vijay C Roy

Tribune News Service

Chandigarh, February 1

The vehicle scrappage policy, under consideration since 2015, will boost business of India’s first auto shredding plant in Ludhiana and the second one in Rohtak, which will commence commercial production next month.

The shredding unit in Ludhiana was set up by a New Zealand-based NRI of Punjab origin in 2019. The plant has a capacity to shred around 2 lakh old vehicles per annum. Besides End-of-Life Vehicles (ELVs), the plant can also shred other metal wastes such as sheets and heavy appliances, etc.

Ludhiana-based company B Lal Steel Shredding (P) Limited is importing raw material to the extent of 60-70% and the rest is sourced locally for the shredding purpose. “In the absence of the policy, we were unable to utilise our installed capacity. Although we are yet to get the fine prints, we expect that it will help in the easy availability of raw material,” said Rakesh Jindal, director of the company.

In North, the second scrap processing plant of 0.5 million tonnes per annum capacity, which is being set up in Haryana’s Rohtak, is scheduled to be commissioned soon. It is being set up by Tata Steel and Aarti Green Tech Limited, a subsidiary of Aarti Steel Limited.

“We are yet to receive the details of the scheme but going by the Budget speech, it seems to be voluntary. The government has to make it mandatory to promote fuel-efficient vehicles,” said Mahesh Mittal, managing director, Aarti Steels.

Corporate Buzz

"The measures initiated to use Rs 2,217 crore to tackle air pollution promote cycling as a mode of transport. We want to see the 42 urban centres demarcated for the purpose being used to lay dedicated cycling tracks." — Pankaj M Munjal, chairman, Hero Motors Company

"We were looking forward to some measures for travel and hospitality sector such as awarding infra status and reducing GST rate, but our issues haven’t been addressed."— Sonica Malhotra Kandhari, Joint MD, MBD group

"Northern states are the hub of MSMEs. There are many positives, including rationalisation of custom duty structures. The proposal to establish textile parks will help Ludhiana, Bhilwara, Gurugram and Panipat>" — Nikhil Sawhney, chairman, CII Northern region

"There is nothing for exporters except a scheme to promote flagging of merchant ships. It will ensure easy availability of export containers. Many new shipping lines will come up." — SC Ralhan, president, Ludhiana Hand Tools Association