India is considering an
Extended Production Responsibility policy for the automotive industry. Discussions are on between ministries on the possibility of setting mandates for automobile makers to recycle a certain percentage of end-of-life vehicles every year and also utilise a certain percentage of recycled material for the production of new vehicles.
Initial discussions have taken place on whether companies can be asked to recycle 20 percent of private vehicles every year. These would be vehicles that have reached end of life and would be more than 15 years old.
"The percentage can increase by 10 percent every year and after 2027, 50 percent of end-of-life vehicles would have to be recycled every year," according to a draft concept note that has been circulated with the industry. A similar formula is being discussed for commercial vehicles.
The government is also considering mandating a minimum use of 20 percent recycled material in the production of new vehicles. Sources say these discussions are at a very nascent stage and a technical committee will soon be formed. However, the environment ministry is leading the discussions and has kicked off consultations with the industry.
The industry has reacted with caution and experts CNBC-TV18 spoke to said that the mandates should not be too aggressive.
RC Bhargava, Chairman of
Maruti Suzuki, said, "Its a good idea. The more we can recycle the better. But before making any policy we need a very detailed study by experts on how this can be done and in what form."
Speaking to CNBC-TV18 on the condition of anonymity, an automotive industry veteran said that mandating the use of a certain percentage of recycled material does happen in European countries and would be good for the industry.
"Using recycled material will cause some discomfort to the industry initially, but it will eventually be good for everyone. The mandates should not be too aggressive. However, it is difficult to imagine how automakers can be compelled to take off a certain percentage of vehicles from the roads. We will have to see if it is commercially viable for companies to buy old vehicles to recycle them, it may be better if companies and consumers can be incentivized in some way," he said.
Going forward there is a likely to be a debate on whether there should be mandates based on the polluter pays principle.
Former Road Transport Secretary Vijay Chibber said, "There is no need to reinvent the wheel and have mandates. The best way is to implement global best practices in vehicle recycling."
First Published: Aug 3, 2023 8:52 PM IST
