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Framework for sustainable management of end-of-life vehicles management in India

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Abstract

Automobile manufacturing requires different metals-steel, aluminium, copper, lead, chromium, nickel and zinc, as well as significant amounts of plastic, glass, rubber and fabric. Analyzing the direct and indirect raw material requirements in the Indian automotive sector during the period 1997–2007, it was found that the material requirement of the sector doubled in a period of 10 years [1]. End of Life Vehicles (ELVs) can also be an important source of secondary raw materials, such as metal and other materials, which if salvaged and/or reused/recycled, can be again fed into the economy thereby helping to close the loop of sustainable resource circulation and reducing the demand for virgin raw materials. Estimates suggest that steel scrap worth INR 115 billion can be generated in India from retired vehicles (that include two wheelers, three wheelers, private cars, commercial passenger and commercial goods vehicles) [2]. In this paper, the authors attempt to use the shared responsibility based framework to explore and develop a business model with a structure of stakeholder engagement for improving sustainability of ELV management in India. The management of end of life vehicles in the country has significant scope for improvements in material recovery and the proposed shared responsibility based framework can help in this context.

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Fig. 1

Source: Authors compilation

Fig. 2

Source: Saman et al. [9]

Fig. 3

Source: Developed by Authors

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Notes

  1. It has also been suggested by SIAM that this tax should be discontinued in public interest as it does not serve any major purpose including traceability of the vehicle. We would particularly like to acknowledge some of the valuable inputs received from Captain Mohan Ram, Consultant to TVS Motor Company and Chairman, SIAM Recycling Group which have helped us structure some aspects of the proposed sustainable ELV recovery and management system/business model.

  2. Many of these vehicles (i.e., those that should have been scrapped, as per the government requirement) are instead sold to rural areas or to the second-hand market.

  3. Downcycling is also important and may be the only option at times. For example, the presence of copper contaminations in automobile steel only allow to use the steel as construction steel, but not in the automobile industry any more.

  4. The salvage price that is which is globally offered to the owner to pay the cost of vehicle’s steel. For bringing about a behavioral change in Indian consumers, a markup over the price of steel could be considered. The suggested additional responsibility of the RTO as a collector in our proposed framework (Fig. 3) is a short-term measure that will help in giving impetus to the whole process of formal ELV management by providing people with a convenient option to go to and surrender their vehicles. But in the long run, as in most EU member states, vehicle manufacturers and importers should be made responsible for setting-up national collection networks for the collection of all ELVs. In collective schemes, a Producer Responsibility Organization (PRO) could be set to implement the EPR principle on behalf of all adhering companies (the obligated industry). These PRO could provide take back systems for effectively implementing EPR principles. In the Indian context, manufacturers could exercise their responsibility via dealers.

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Authors and Affiliations

  1. The Energy and Resources Institute, New Delhi, India

    Nitish Arora, Shilpi Kapur Bakshi & Souvik Bhattacharjya

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  1. Nitish Arora
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  2. Shilpi Kapur Bakshi
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Arora, N., Bakshi, S.K. & Bhattacharjya, S. Framework for sustainable management of end-of-life vehicles management in India. J Mater Cycles Waste Manag 21, 79–97 (2019). https://doi.org/10.1007/s10163-018-0771-0

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