Automobile technology and automation firm Rosmerta Technologies plans to invest Rs 200 crore to set up ten vehicle scrappage units over the next three years, according to a top company executive.
The company currently operates a single vehicle scrapping facility in Manesar (Haryana) with a capacity of processing 30,000 vehicles annually.
After the capacity addition, the company will be able to process up to 3 lakh vehicles annually.
In an interaction with PTI, Rosmerta Technologies President Kartick Nagpal said that with the setting up of the scrappage centres, the company will be able to contribute to the circular economy by helping recycle three lakh vehicles each year.
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"With this regard, we plan on investing Rs 200 crore across India to leverage this situation and contribute to the circular economy," he added.
The central government believes that the output from scrapped vehicle materials would save about 33 per cent on raw material costs and will bring down reliance on imported metals such as aluminium, copper as well as rubber.
India, which is ranked fourth and sixth largest manufacturer of passenger and commercial vehicles respectively, imports metals worth USD 34.7 billion each year.
In August 2021, Prime Minister Narendra Modi had launched the national vehicle scrappage policy to help phase out unfit and polluting vehicles and also promote a circular economy.
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While the government has financially incentivised scrapping old vehicles and replacing them with new ones, over 50 lakh light motor vehicles aged over 50 years (as per industry estimates) continue to ply unchecked.
Rosmerta Technologies is the country's leading manufacturer of high-security registration plates (HSRP). It also has presence in intelligent transport management systems, automated testing stations and automated driving testing tracks among others.
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