Indian owners of old cars and white goods will soon have a choice of selling these junked items to registered scrap dealers at predetermined prices, once the Metal Recycling Policy comes into place The Metal Recycling Policy is jointly prepared by Ministry of Steel and Niti Aayog, which comes under Central government. They have already met various stakeholders and policy is likely to be finalized over the next few months.
“We have a huge wealth in the form of metal scrap. We (Niti Aayog and Steel Ministry) are working on Metal Recycling Policy. We want to look at scrap management in an organized manner. Why can’t we set up multiple scrap centers in every part of the country where people can deposit old cars, old fridges, and washing machines and get the right price?” Vijay Kumar Saraswat, member, Niti Aayog said.
The policy is likely to take into account the implications of National Green Tribunal (NGT) ruling on banning over 15 years old diesel and petrol vehicles in several states in India. According to industry estimates, the average recycling rate in countries like USA, UK, Japan and South Korea is over 80 per cent, while India’s recycling rate is merely 20-25 per cent.
Will it reduce import dependence?
Currently India imports around 5-6 million tons of recycling scrap every year from countries like US, Europe, Middle East and South Africa. In the run up to formulation and promulgation of the new metal recycling policy certain questions naturally crop up
- When can we expect the implementation of this policy to significantly impact the imports of scrap?
- Will increased generation of scrap lead to setting up of more scrap fed steelmaking units or capacity expansion of EAF’s?
- Will the increased availability of domestic scrap translate into increased scrap share rates in BOF’s?
- How much iron ore displacement will scrap cause in coming 5 , 10 and 15 years.
- How much will the end of life products contribute to generation of obsolete scrap, since infrastructural replacement and housing replacement phenomena is yet to become a norm in India.
Lot of people believe that, in country like India, it may be difficult to implement this policy. But if this happens so, this will change the entire metal recycling industry. Notably India is the third largest scrap importer in the world, Turkey being the largest and South Korea second largest.
Mahindra Intertrade had already signed a joint venture agreement with MSTC to set up the country’s first auto shredding and vehicle recycling unit in Gujarat or Maharashtra. Company is expected to commence operations by early 2018.
TOPIC TO BE DISCUSSED AT :
3rd Steel Scrap & Raw Materials Conference
Avani Riverside, Bangkok (Thailand)
11-12 September 2017
- What will be the impact of Indian metal recycling policy?
- Will rising steel exports from India sustain?
- Will ship breaking remain a scrap feeder?
- How will scrap supply dynamics shape up in 2017-2018?