EXCLUSIVE: Mahindra, MSTC JV leads race to set up vehicle scrapping facilities

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Cero, a joint venture between Mahindra Accelo and MSTC Ltd, is leading the way in setting up vehicle demolition centers across India. Mahindra Accelo is the steel subsidiary of the Mahindra Group, while MSTC is a central government enterprise.

Cero has expressed interest in setting up registered vehicle demolition centers in Madhya Pradesh, Telangana, Gujarat and West Bengal, according to sources. Cero already has demolition centers in Greater Noida and Pune.

Last December, Cero signed an agreement with the government of Maharashtra to set up four more vehicle demolition centers in the cities of Mumbai, Nagpur, Aurangabad and Nashik.

Gujarat appears to be a favorite state for establishing vehicle demolition centers, an official said. Four companies – CMR-Kataria Recycling, Modest Infrastructure, Cero and Modest Engitech – have expressed interest in setting up vehicle recycling units in the state.

CMR-Kataria is a joint venture between Century Metal Recyclage and the Kataria group. Modest Infrastructure Private Ltd, is a subsidiary of Dempo Group of Companies and is engaged in shipbuilding and repair.

Last August, Prime Minister Narendra Modi launched the National Automobile Scrapping Policy to gradually eliminate unsuitable and polluting vehicles. Under the policy, consumers who dispose of old vehicles will not be charged any registration fees for the purchase of a new vehicle.

The Minister of Road Transport and Highways, Nitin Gadkari, had recently explained how he intended to seek more tax breaks from the Ministry of Finance to encourage the scrapping of vehicles.

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