Abdul Wahab Khan
Panaji
Goa’s first vehicle scrapping facility, located at the Madkai industrial estate and operated by Mangal Iron Pvt Ltd, has seen minimal usage since its launch a month ago.
In December 2024, only 25 vehicles were processed, despite the facility’s capacity to handle 2,500 vehicles per month.
The state government has taken steps to address the issue, including floating a tender to scrap 41 vehicles. Goa has an estimated 500-700 government-owned vehicles, which are over 15 years old, unused and are occupying space. Additionally, approximately 1,000 private vehicles remain abandoned and are rusting across the state.
Challenges affecting the facility include competition from unregulated scrap dealers, who offer higher rates for vehicles and bypass legal requirements such as registration cancellation. Additionally, the incentives for scrapping vehicles in Goa are less attractive compared to other states. While Goa offers a road tax discount of up to 25% on new vehicle purchases and a waiver of the registration tax, states like Uttar Pradesh and Madhya Pradesh provide additional cash benefits and flat-rate discounts.
To address these issues, Mangal Iron Pvt Ltd has proposed increasing consumer benefits.
It has suggested consumer benefits such as a flat 25% road tax discount on new vehicle purchases regardless of the value of the scrapped vehicle. However, lack of awareness among car dealers about the benefits and procedures of the scrapping process has also hindered adoption.
A car dealer from Margao admitted, “There is still confusion among dealers about the exact benefits and procedures involved in the scrapping process. Many of us are not fully informed about the scheme and it is hindering adoption.”
The vehicle scrapping facility was designed to curb pollution and promote sustainable practices. Its success depends on stronger government support, consumer incentives and public awareness. Despite its potential, the facility faces operational challenges and resolving these issues is essential for the initiative to contribute meaningfully to Goa’s sustainability goals.
