The Ministry of Steel has recently introduced the Steel Scrap Recycling Policy, a key measure that points towards a circular economy in the steel sector. This initiative aims to leverage steel scrap, resulting from end-of-life vehicles and discarded white goods, for quality steel production. The proactive approach not only promises to lower dependency on imports but also intends to declutter Indian cities from End of Life Vehicles (ELVs).
Extended Producer Responsibility in Focus
Extended Producer Responsibility (EPR) is one of the pivotal features of the introduced policy. It mandates automobile manufacturers to design their vehicles considering the recyclability aspect at the end of the vehicle’s lifecycle. Furthermore, the policy provides a platform to enable and encourage the inception of metal scrapping centres throughout India.
The Hub and Spoke Model
The policy employs the Hub and Spoke (H&S) model to streamline the process of collection and scrapping. Under this model, there are multiple sourcing locations (spokes) connected to a central location called the hub. The hub acts as a single point of contact to the client, while the spokes function as in-country extensions.
This model will formalize and scientificize the collection, dismantling, and processing activities for end-of-life products that serve as sources of recyclable metallic and non-metallic scraps. With this system in place, 4 collection and dismantling centres will cater to 1 scrap processing centre.
| Policy Features | Benefits |
|---|---|
| Circular Economy in Steel Sector | Reduces import dependency and declutters cities |
| Extended Producer Responsibility (EPR) | Promotes vehicle recyclability |
| Hub and Spoke Model | Organizes collection, dismantling, and processing activities |
Environmental Emphasis of the Policy
Also of prime importance is the policy’s commitment towards environmental sustenance. It is built around the Principles of 6Rs: Reduce, Reuse, Recycle, Recover, Redesign, and Remanufacture. The policy specifically aims to cut down Green House Gas (GHG) emissions and features a mechanism to treat waste streams and residues emerging from dismantling and shredding facilities.
Status and Future of Steel Scrap in India
Steel scrap, which is essentially used or reused steel, acts as the secondary raw material for the Indian steel industry. Alongside iron ore—the primary source for steelmaking—steel scrap greatly contributes to the steel manufacturing process. The current contribution of scrap is 25 million tonnes from the domestic unorganized scrap industry and an additional 7 million tonnes from imported scrap.
The availability of these raw materials at competitive rates is critical for the growth trajectory of the steel industry and to accomplish the National Steel Policy (NSP) 2017 target. NSP-2017 proposes the development of a globally competitive steel industry with a production capacity of 300 million tonnes per annum by 2030.
Last Modified: February 6, 2024