New Delhi: Steel minister Chaudhary Birender Singh on Tuesday said the joint venture auto shredding plant to be set up by state-run MSTC Ltd and Mahindra Intertrade Ltd, a unit of Mahindra and Mahindra Ltd, will boost manufacturing activity, provide quality raw material to factories using steel and help in creating a new industry of recycling scrap.
The two companies signed a joint venture agreement on Monday for setting up a one lakh tonne a year auto crushing facility at a cost of Rs.120 crore, the first such facility in the country.
“The joint venture is going to be a path-breaking initiative for sustainable development. Import of scrap will decrease resulting in foreign exchange savings, while recycling will help in preserving the quality of scrap and enhance its monetary value. We can even explore the possibility of making zones or clusters of shredding plants, which can provide raw material for secondary steel industry in steel consuming states,” said Singh.