Recycling ELVs India Report

Transcription

1 Recycling ELVs India Report Captain N.S. Mohan Ram, Chairman, Recycling sub-group, Society of Indian Automotive Manufacturers.

2 Nos. in Lakhs 140 Automobile Production Trend Passenger Vehicles Commercial Vehicles Two Wheelers

3 Nos. in Millions 80 Registered motor vehicles in India Passenger Vehicles Commercial Vehicles Two Wheelers

4 Current position Despite slight slowdown total production of 0f 18.4 million vehicles comprising 14,8 million two wheelers,.48 million three wheelers and 2.32 million cars and vans. Market revived. July 2014 sales up 12% Million vehicles. India is a huge market which is growing. 4

5 What do the numbers mean? Production increased ten fold and population five fold over twenty years. World No 2 in two- wheelers and sixth in car production. No 2 in tractors. The market is still growing rapidly. Currently ELVs recycled by unorganized sector. A spurt in vehicles for scrapping soon. Will grow by 10-11% per annum for next thirty years. Great potential for well run technically competent recycling units with assured supply of ELVs and ready market for output 5

6 The Unorganized Sector Units in India now dismantling vehicles are small, employ unhygienic processes. Use unhealthy practices, poison air, pollute ground water and labor working under unhealthy conditions. (Pictures- courtesy ICRA report to SIAM) 6

7 A truck being broken up 7

8 Unsafe Working Conditions 8

9 Informal sector Mostly located inside cities. Mayapuri in Delhi is residential. Chennai s hub Pudhupet right behind Anna Salai- city center. Same case in Mumbai, Kolkata and other cities. Sooner or later units have to move out of cities and upgrade or e shut down. 9

10 Problems of informal sector (2) Delhi recycling center Mayapuri employs about Overall estimated people working under bad conditions. Pollute the air, contaminate water, release heavy metals in the soil. Serious threats to health. Will have to upgrade and adopt better practices or close. 10

11 Positives Automotive recycling is coming into focus. Government agencies interested. ELV recycling identified as a step in Prime Minister s Action Plan on Global Warming. Auto Industry OEM association SIAM set up a group to promote efficient recycling of ELVs. 11

12 Positives (2) Major public private partnership initiative Recycling Demonstration Unit set up at GARC Chennai, by the Ministry of Heavy Industry with help from Automobile Industry, working from August Industry donated cars and two wheelers to start operations. Aim to develop systems and processes for Indian conditions, use maximum manual labor, develop systems for two wheelers and to upgrade units in unorganized sector. 12

13 Recycling Demo Unit 13

14 Positives (3) Indian OEMs export vehicles meeting ELV regulations A third of auto component manufacturers comply with EC rules for recyclability. Maruti Suzuki, a major car company complies with EEC regulations from India can leverage the experiences of other countries. 14

15 Issues Systems for efficient collection, scientific dismantling and shredding of ELVs yet to be set up. India does not have even one shredder. Rules for dealing with end of life vehicles are just getting finalized and should be operative in about three years. Industry growing exponentially. Installed capacity of car industry exceeds 3 million annually to reach 4.75 million units soon. 15

16 Issues (2) Surge in vehicles for scrapping due to rapid increase in vehicle sales. Need to develop systems for two and three wheelers- 75% by number and 30% by weight. Draft Indian rules cover the category. We need to develop suitable systems. Japan and advanced countries focus processes which reduce labor content. India will need to use maximum manual labor to improve yields and create jobs. 16

17 Issues (3) Creating modern infrastructure for recycling. Role of Governments- Central, State and Local Incentives, concessions, tax breaks Encouraging scrapping of old vehicles Aligning ME/SME vendors towards recycling 17

18 Issues (4) Leveraging benefits from demo center Accreditation standards for units With land at premium, landfills? Upgrading unorganized units Handling toxic materials and explosives Training labor and technicians Maximum use of manual labor 18

19 Opportunities Huge numbers of ELVs soon, increasing steadily. Regulatory framework coming in place. Organized units using latest techniques and systems can have a huge market. Large demand for steel scrap, Aluminum, other metals, plastic and rubber in India. A potentially huge market for recyclers, equipment manufacturers and processors. 19

20 Thank you 20