Rosmerta Allocates ₹200 Crore to Establish 10 Vehicle Scrappage Units.

Automobile technology and automation firm, Rosmerta Technologies, is set to invest ₹200 crore over the next three years to establish ten vehicle scrappage units, as confirmed by a top company executive.

Currently, the company operates a single vehicle scrapping facility in Manesar, Haryana, with an annual processing capacity of 30,000 vehicles. After the capacity expansion, Rosmerta Technologies will be capable of processing up to 3 lakh vehicles annually.

Rosmerta Technologies President, Kartick Nagpal, shared during an interaction with PTI that the establishment of these scrappage centers will significantly contribute to the circular economy by recycling three lakh vehicles each year. He added, "With this regard, we plan on investing ₹200 crore across India to leverage this situation and contribute to the circular economy."

The Indian government envisions that the materials obtained from scrapped vehicles will lead to a 33 percent reduction in raw material costs and diminish the country's reliance on imported metals such as aluminum, copper, and rubber. India, ranked as the fourth and sixth-largest manufacturer of passenger and commercial vehicles, respectively, currently imports metals worth $34.7 billion annually.

In August 2021, Prime Minister Narendra Modi introduced the national vehicle scrappage policy, aimed at phasing out unfit and polluting vehicles while promoting a circular economy. Despite financial incentives from the government to scrap old vehicles and replace them with new ones, over 50 lakh light motor vehicles that are over 50 years old (as per industry estimates) continue to operate unchecked.

HBL