Vehicle scrapyard facility based on private model from October

PANAJI

Goa is set to have its first vehicle scrapyard within a month, with the only firm that bid for the project now securing the contract. The facility is being set up on a private model but must be registered with the State government.

“The firm has committed to making the scrapyard fully operational by the first week of October,” Transport Director P Abhishek said speaking to The Goan.

Located at Madkai Industrial Development Corporation, the scrapyard being set up by Mangal Iron Pvt Ltd will adhere to strict government regulations.

This comes as a relief to local vehicle owners, who previously had their end-of-life vehicles (ELVs) transported to Maharashtra or Karnataka for scrapping. 

“The new facility will be mandatory for scrapping government ELVs  while private owners will receive incentives on new vehicles as per the Government of India’s guidelines,” Abhishek added.

The facility will have the capacity to handle around 2,500 vehicles per month while the scrapping will take place scientifically.

The State government data reveals that as of last year, 1.9 lakh vehicles in Goa including 521 government vehicles, surpassed 15 years in age and were ready for scrapping. Over the next five years, an additional 3.5 lakh vehicles in Goa will exceed 15 years of age, with many from the commercial sector set to be scrapped.

Owing to the absence of a local facility, many of these aging vehicles have remained on the roads and some even getting the registration of 15-year-old vehicles extended by five years.

Regarding the facility, the government had earlier faced challenges to attract investors. The Goan had in April reported that only one firm had ultimately shown interest.

The deadline for bids was even extended from October 31, 2023, to December 31, 2023, to encourage participation. Challenges of acquiring vast and expensive land and apprehending opposition from the locals -- who have been resistant to various government projects -- were some of the contributing factors that deterred bidders from taking part in the scrapping process.