Mahindra and MSTC to form JV for auto shredding plant

Mahindra Intertrade Ltd, a solution provider for processing of flat steels, and MSTC Limited, a PSU under the Ministry of Steel, yesterday signed a memorandum of understanding (MoU) for setting up a joint venture company for establishing an auto shredding plant in New Delhi. Mahindra Intertrade, a wholly owned subsidiary of Mahindra & Mahindra Limited (M&M), operates India’s largest network of steel service centres across automotive, power and home appliance verticals.
 
Stating that the joint venture will contribute to ‘Make in India’ drive of the government, Narendra Singh Tomar, Minister of Steel and Mines, said, “The enterprise will support Clean India by waste utilisation and also bring down imports of scrap resulting in foreign exchange savings. Such initiatives are also need of the hour for a stronger and better India and will help the development of steel industry.”
 
The setting up of a shredding plant in India will reduce the dependency on import of shredded scrap which will help save precious foreign exchange as well as it will be helpful for the secondary steel sector. Apart from this, the shredding of automobiles and other scrap will facilitate & promote recycling, reduce pollution and make Indian roads safe for driving. Recycling will also make Indian steel more competitive vis-a-vis imported steels.