A demonstration unit of an automobile recycling plant is being set up in Sipcot Industrial Estate in the outskirts of Chennai to raise awareness about safe disposal of automobiles among the country’s recyclers.

The plant will be a joint venture of Society of Indian Automobile Manufacturers (SIAM), and National Automotive Testing and R&D Infrastructure Project (NATRiP), which functions under the Ministry of Heavy Industries. An announcement to this effect was made by Ikbal Nathani, president, Metal Recycling Association of India (MRAI). MRAI is one of the industry bodies providing feedbacks to the Ministry of Heavy Industries on safe disposal of automobiles.

“The first automobile recycling demo unit coming up at Sipcot industrial estate on Chennai outskirts at National Automotive Testing and R&D Infrastructure Project’s (NATRiP) 300 acre vehicle testing track compound is likely to be commissioned in the first quarter of 2011,” announced Mr. Nathani in Ahmedabad on Thursday.

“This demonstration unit will help create awareness amongst the recyclers about safe disposal of automobiles and will also serve as a model for industry,” he added.

The unit is being planned to serve as a model for the automobile recycling industry. The plant will comprise of a basic recycling unit for manual dismantling of vehicles in phase one and a shredder plant to break down vehicles into smaller pieces.

The demo unit set up at an estimated cost of Rs One crore is expected to be ready for commissioning in the first quarter of 2011.

After a long wait of almost nineteen months, the Sanand plant, near Ahmedabad in Gujarat rolled out its first Nano on Wednesday.

Nano – the answer to the hopes of millions of families belonging to the lower and the middle strata, of owning a four wheeler, was rolled out in an elaborate “flagging off” ceremony held at the Sanand plant. Nine Nano cars were flagged off by Mr. Narendra Modi, the Chief Minister of Gujarat and Mr. Ratan Tata, Chairman of the Tata Group. Though the ceremony started as planned, it had to be stopped mid-way when the plant was hit by rain and storm during the ceremony. This storm was caused by a low pressure belt in the Arabian Sea. The wind and the storm were so strong that the entire temporary structure erected for the ceremony came crashing down soon after the inauguration ceremony started. The winds also caused a part of the plant ceiling and the decorated entrance gate to collapse. Even the electric poles and some trees near the plant were uprooted mercilessly by the winds.

Speaking at the inaugural function, Mr. Tata promised the Gujarat Chief Minister many more “surprises” to come. He appreciated the support that the Gujarat administration had offered him especially after the political upheaval at Singur, West Bengal. He also added that shifting the plant had caused the Nano to roll out mush later than expected. He said that rolling out Nano in just nineteen months after the shifting of the plant from Singur to Sanand would not have been possible without the uncompromising support of the Gujarat administration. He expressed his heart felt gratitude to Mr. Modi for allowing him to set up a Nano manufacturing plant in Sanand. Mr. Tata also hinted at helping the state to progress rapidly by starting many more projects in Gujarat.

Mr. Modi, returning the compliment said that he was really proud that Nano had been produced by Gujarat. He said that today every owner of Nano would remember that the car that he is driving has been made on Gujarat’s soil. He also said that it was a pleasure for him to be able to convince the Tata’s for a “second home coming.” He reminded the people sitting there that the Tatas are originally from Gujarat and had left the state to set up projects all over India. But their decision to return to their native state was appreciated and much needed for the development of Gujarat.

Once the inaugural speeches were over, Mr. Modi and Mr. Tata flagged off the nine cars, along with their owners, for a twelve thousand kilometer trek around the country. During this trek, the Nano would be showcased in more than forty cities and towns. The tour will end on June 28, 2010, when all the nine Nanos would return to the Sanand plant.

A survey conducted by the country’s top brokerage house ICICI Securities, said that Indians are mostly interested in buying houses worth Rs 20-50 lakh. The survey was conducted in eight Indian cities Mumbai, Delhi/NCR, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad and Pune. Housing demand in the National Capital Region comprising of Delhi and adjoining cities like Noida, Gurgaon and Greater Noida is much lesser compared to cities like Hyderabad, Bengaluru and Mumbai. But these regions have a higher percentage of under-construction houses than any other region.

According to the survey, Indian home buyers prefer mid-income houses ranging from Rs.20 to 50 lakhs. While 50 per cent of prospective buyers are interested in houses worth Rs 20-50 lakh, 35 per cent want a price lower than Rs 20 lakh. In Delhi, most of the recent project launches are targeted at high-end home buyers who prefer flats worth Rs 1 crore or more. Unfortunately less than three per cent buyers want houses worth more than Rs one crore and 12 per cent are interested in a price tag of Rs 50 lakh to Rs one crore. To tap into the mid-income housing market, projects between Rs.20 to Rs.50 lakh should be launched to cater to the needs of the home buyers.

Gold prices are declining since past 10 days and have reached around Rs.17, 100 per 10 grams which is 8 percent down from earlier months. Gold prices soared after Diwali and touched an all time-high of Rs.18, 300 per 10 grams during early December. Major markets such as Mumbai and Ahmedabad witnessed more than 50 percent decline in retail sales in the past 15 days.

Retail sales of gold have continued to drop as prices of essential commodities have also shot up considerably and kept middle-class customers away from gold. As there are no auspicious festivals this trend is expected to continue for another month or two. The only respite for gold retailers is customers who are forced to buy because of personal reasons such as marriage in the family. Due to drop of prices in the past few days the bulk traders purchased gold which helped the gold business to some extent. Though many retailers have come up with interesting schemes and offers to encourage customers to buy gold, there are no takers for these offers. The customers are on the wait and watch approach expecting the prices to come down further during the coming months.