Steel scrapping policy to boost domestic production

Photo for representation.

The Centre has notified the Steel Scrap Recycling Policy which aims to increase the domestic scrap generation and cuts down the import dependency.

The policy deals with scrap including from households, railways, industrial sectors and automobiles.

At present, around 25 million tonnes of scrapped steel comes from the domestic unorganised industry and the import of 7 million scrap costs around Rs 24,500 crore annually. Through the policy, the government aims to increase the availability of the scrapped material by another 7 million tonnes. The policy also proposes setting up of around 70 collection and dismantling centres.

The policy aims to promote the circular economy in the steel sector and producing high-quality ferrous scrap for quality steel production thus minimising the dependency on imports.

Other objectives are to decongest the Indian cities from end-of-life vehicles (ELVs) and reuse of ferrous scrap, processing and recycling of products in an organised, safe and environment-friendly manner and to evolve a responsive ecosystem by involving all stakeholders among others, said the statement from the steel ministry.

National Steel Policy 2017 (NSP-2017) aims to develop a globally competitive steel industry by creating 300 Million TPA steel production capacity by 2030 with a contribution of 35-40% from the end-of-life vehicles route.

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