Increased metal recycling can cut auto components cost by 30 per cent: Gadkari

Kochi, Feb 3 (PTI) Union minister Nitin Gadkari on Friday said increased metal recycling can bring down the cost of auto components by a hefty 30 per cent which will automatically increase the industry’s export competitiveness.

Addressing an international conference on material recycling here through a video conferencing, the minister said the government has set a target of doubling the size of the automobile sector to Rs 15 lakh crore and create an additional 5 crore jobs. But he did not give a time line for achieving the target.

India overtook Japan to become a the world’s third largest automobile market in 2022.

The three-day conference is being organised by the Material Recycling Association of India, and is attended by over 2,000 delegates from across the world.

Noting that the country faces shortages in copper, aluminium and steel, he encouraged the recycling industry to get into joint ventures with foreign companies so that the scale of Indian industry which is highly unorganised can go up.

“We need to encourage recycling of material to reduce the cost of the finished product and we will make more export and that is the reason that government is propagating the vehicles scraping policy. Increased scrapping can reduce the cost of auto components by as much as 30 per cent,” Gadkari said, adding that next fiscal 9 lakh government vehicles will be scrapped.

He also appealed to the automobile manufacturers to set up large scrapping units and offered them concessions at the forthcoming new dry ports in Wardha, Sangli and Kolhapur in Maharashtra.

Noting that the whole world is adopting a “waste to wealth” philosophy, he said the government will do everything to encourage more imports of scrap so the our shortage of key metals can be addressed.

By importing more waste tyres, waste plastics, auto parts, automobile units can make value more value addition on one hand and on the other the cost of automobile components can come down by 30 per cent. To increase more recycling, he said the government will set up scrapping unit in every district.

With a size of Rs 7.5 lakh crore and employing 4.5 crore people, the auto industry is the largest contributor to GST, he said.

Circular economy is the future as it is going to create more jobs, create more wealth for the country and the material recycling industry can play a very big role in this. PTI BEN.

The reporter attended the conference on invitation from the Material Recycling Association of India. HVA

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.