Sun Feb 22 17:47:46 UTC 2026: Headline: South India’s Largest Vehicle Scrapping Unit to Be Established in Kerala

The Story:
The Kerala State Road Transport Corporation (KSRTC) is partnering with South India Metal Corporation (SIMCO) to establish South India’s largest registered vehicle scrapping facility (RVSF) in Kandanakam, near Edappal in the Malappuram district. Transport Minister K.B. Ganesh Kumar laid the foundation stone on February 20, 2026, hailing it as a significant step for Kerala’s vehicle recycling sector. The ₹30-crore center, built on three acres, aims to scientifically scrap up to 100 metric tonnes of vehicles daily and is expected to be operational within eight months, projecting an annual turnover of approximately ₹300 crore.

Key Points:

  • KSRTC and SIMCO are collaborating on the project.
  • The facility will be located in Kandanakam, near Edappal in the Malappuram district.
  • The foundation stone was laid on February 20, 2026.
  • The project cost is ₹30 crore.
  • The facility will be able to scrap up to 100 metric tonnes of vehicles per day.
  • The expected completion time is eight months.
  • The projected annual turnover is ₹300 crore.
  • Vehicle owners who scrap their vehicles at the RVSF will be eligible for tax concessions and other benefits under the Certificate of Deposit (CoD) system.

Critical Analysis:
The establishment of this RVSF reflects a broader push toward sustainable practices and a formalization of the vehicle scrapping industry in Kerala. The involvement of KSRTC, a state-owned entity, suggests government support for this initiative. The CoD system incentivizes responsible vehicle disposal and promotes the purchase of new vehicles, potentially boosting the automotive industry. The creation of similar centers in northern and southern Kerala indicates a state-wide strategy.

Key Takeaways:

  • Kerala is taking proactive steps to address environmentally harmful vehicle scrapping practices.
  • The project aims to bring transparency and scientific methods to the vehicle recycling sector.
  • The partnership between KSRTC and SIMCO demonstrates a public-private approach to infrastructure development.
  • The CoD system is designed to incentivize responsible vehicle disposal and promote new vehicle purchases.
  • The RVSF is expected to have a significant economic impact, generating substantial revenue and creating jobs.

Impact Analysis:
The establishment of South India’s largest vehicle scrapping unit has several long-term implications. Environmentally, it will help reduce pollution and promote the responsible disposal of hazardous materials found in end-of-life vehicles. Economically, it will create new business opportunities and jobs in the recycling sector. Socially, it will raise awareness about the importance of sustainable practices and encourage responsible vehicle ownership. The success of this project could serve as a model for other states in India to adopt similar initiatives. The planned expansion to other regions of Kerala suggests a commitment to creating a comprehensive vehicle recycling infrastructure across the state.

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