India’s Mahindra Cero Limited, a joint venture between government-run trading firm MMTC Limited and Mahindra Accelo, a subsidiary for setting up vehicle scrapping facilities across the country, will implement a project in the southern state of Karnataka, company sources said on Friday, September 22.
The sources said that it would be the first vehicle scrapping facility in Karnataka and one of the four projects to be approved by the state government within the next few weeks.
As per rules framed by the Karnataka government, all government-owned and -operated vehicles will have to be mandatorily scrapped after 15 years.
According to a government official, initially the vehicle scrapping facilities will have limited capacities and operate only cutters, and once the volumes of vehicles offered to be scrapped touch a viable scale, the facilities will install other machinery like balers to crush vehicles in bulk.
However, sources said that government vehicles reaching the end-of-life cycle of 15 years total only around 15,000 in Karnataka and incentives to be offered for scrapping and purchases of new vehicle are yet to be announced and this would be a hindrance to scrapping facilities achieving optimal volumes.