Govt plans new steel scrap recycling guideline

SEATTLE (Scrap Monster): The Indian government is finalizing a new National Steel Scrap Recycling Policy to replace the 2019 guidelines, aiming to align domestic production with global net-zero goals.

The government is finalising a national steel scrap recycling policy, replacing the existing 2019 guidelines, to align it with changing dynamics of the industry arising out of domestic compulsions and commitments, and emerging international developments.

Speaking to reporters on the sidelines of the 13th International Material Recycling Conference in Jaipur, Daya Nidhan Pandey, Joint Secretary, Ministry of Steel, said the policy might be readied within the next couple of months.

“While scrap consumption in the Indian steel sector has been rising, the scrap availability is estimated to rise to nearly 36 million tonnes (MT), which clearly indicates that demand for steel scrap will increase sharply as large-scale capacity expansion continues,” Pandey said.

“India aims to progressively raise the share of scrap in steelmaking towards the global average of 31%. As the country moves towards 300 MT steel capacity by 2030 and 500 MT by 2047, steel scrap will play a decisive role in conserving raw materials, reducing coal imports, lowering emissions, and supporting India’s commitment to achieve net zero by 2070,” he added.

Decarbonising the Forge

The National Steel Policy 2017 estimated 35-40% of the steel capacity through the EAF/IF route by 2030. Although scrap is the main raw material for the secondary sector, primary players also use scrap in the basic oxygen furnace (BOF) route to the tune of 15%, primarily to improve efficiency, and minimise production cost.

The 2019 Steel Scrap Recycling Policy, aimed at promoting the circular economy of the steel sector, was intended to encourage processing and recycling of end-of-life products in an organised, safe and environment-friendly manner. While the policy desired to evolve a responsive ecosystem by involving all stakeholders, decongest Indian cities from end-of-life vehicles and reuse of the ferrous scrap, it aimed to promote reduce, recycle, recover, redesign and remanufacture through scientific handling, processing and disposal of all types of scraps through authorized centers.

Pandey, however, didn’t disclose the contours of the new steel scrap recycling policy.

BigMint CEO Dhruv Goel, however, said, “India’s new steel scrap policy should focus on creating a transparent and domestically integrated scrap ecosystem to support cost-competitive and low-carbon steelmaking. The government can incentivise organised scrap collection and processing through GST rationalisation, viability-gap funding for shredding centres, and faster clearances for vehicle scrappage units.”

An industry veteran said that the government should also simplify and expedite the vehicle deregistration process, enhance incentives for end-of-life vehicles, and make the scrappage of such vehicles mandatory to ensure effective implementation of the policy.

Courtesy: www.financialexpress.com