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Steel Scrap Recycling Policy 2019

Steel Scrap Recycling Policy 2019

Steel Scrap Recycling Policy 2019

The Government of India (GoI) has issued Steel Scrap Recycling Policy to create a scientific method of collecting, dismantling and processing the products that could be used for recycling. The policy includes guidelines and mechanisms for manufacturers and government to help set up an energy-saving and a responsive environment. The policy was issued on 8th November 2019, and it shall be monitored by the Ministry of Steel. The scrapping policy was introduced to reduce the gap between the demand and supply and make the required amount of scraps to make available for the industry.


After the draft of National steel Policy 2017 to increase the steel production in India to 300 million tons per annum, the Ministry of Steel has implemented Steel Scrap Recycling Policy. The policy would promote ferrous or steel scrapping centres in India. Establishing these centres, procuring raw materials for scrap for Electric Arc Furnaces (EAFs) or Induction Furnaces (IF) would be cheaper withy increased quality. Thus through cheaper and quality scraps, the stell industry shall have increased growth and seek to compete with companies in the international market.

To establishing the steel scrap policy, the Ministry of Steel shall encourage the industries to upgrade the technology for increased production. The policy shall promote 6’R’s. They are:

  • Reduce
  • Reuse
  • Recycle
  • Recover
  • Redesign
  • Remanufacture

Through the 6’R’s, the ministry shall increase the scrap availability for the downstream industry. Sources for the steel scrap can use mill scrap, structural items like beams, reinforced steel and plates, plant and machinery that includes pipes, tubes, old vehicles, domestic goods, automotive scraps, shipbuilding industry and railways. However, as per the present policy, scraps can be used from automobile, household, structural, railways and industrial. But this policy excludes the industries like ship breaking items that are covered from separate act or policy.

As per the Ministry of Steel, the use of scrap for steel production shall increase from 35-40% to achieve the 300 million tons per annum target. Hence this policy aims to provide support and create a sustainable environment for all the industries engaged in the collection, dismantling, processing and transportation. The policy shall also make the country self-reliant for the availability of scraps and boost the production of imports.

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  • Create formal and scientific collecting, dismantling and processing for recycling
  • Make availability of resources to create a circular economy
  • Produce high-quality ferrous scraps to increase the quality of steel production
  • Set up an energy-saving and environmentally sound management system to create resource conservation
  • To create an organised and safe environment for processing and recycling the products
  • Create a responsive ecosystem by including all the stakeholders
  • Provide a platform to reuse ferrous scrap
  • Create a mechanism to treat wastes dismantled from industries that produce Hazardous wastes
  • Promote the 6’R’s through authorised facilities

Setting up a Scrap Processing Center

The production of vehicles and consumer durable white goods have increased in the last two decades. These increased products shall result in generating large quantities of resulting in out of operation. All these products will lead to generating ferrous scrap for recycling that could be used to produce high-quality steel. To address the recycling process, increase scraps in India and to structure the informal recycling sector that would create an eco-friendly environment, India has proposed a working hub and spoke model.

Model for the Hub and Spoke Model

  • The scrap processing centre should be established by collection or dismantling centre
  • The collection or dismantling centre should handover the depolluted, dismantled ELVs, white goods and other scraps to the authorised scrap processing centre
  • Create an effective logistics team to address the main challenges It should also provide solutions for creating a cost-effective system for inbound unprocessed products or scrap and outbound processed scraps.
  • The framework shall provide support to prevent theft
  • The logistic facility shall meet all the requirements of the National Logistic Policy
  • The centres can be established near highways, industrial corridors and  railway sidings to develop multi-modal logistics parks


The following are the guidelines that have to be implemented regarding dismantling centre:

  • Facilities that handle a large volume of scraps should be set up in a large area. The facility should have adequate space for transportation, storage for the products received and for the recyclable material recovered.
  • The facility should fulfil the criteria of an adequate secured area to handle, depollute and dismantle ELVs. It should also have an adequate secured area to handle white goods and other scraps.
  • The facility should have enough requirements to handle ELVs to minimise human intervention, and it should provide a safe working space.
  • All the facilities should follow the updated guidelines of the Occupational Health and Safety Assessment Series (OHSAS). It should also provide safe operating practices and engaged with a trained workforce to process the scraps.
  • The centre should be located in a dry area to create a safe environment and keep pollution under control
  • The centre should be equipped with the depollution system. The centres should adhere to all the environmental norms stipulated by the Ministry of Environment and Forest (MoEF) and State Pollution Control Board (SPCB)
  • The used oil should be disposed of only through the authorised centres
  • The centres should have adequate storage of batteries, filters, containing condensers and tyres. The storage unit should meet the criteria as per Hazardous, and Other Wastes (Management and Transboundary Movement) Rules 2016.
  • All the facilities engaged in collection or dismantling should issue a Certificate of Destruction (COD) or Proof of scrappage to the buyer/owner.

Responsibilities of Dismantling and Scrap Processing Centers

  • The centre should be established as per the Factory and Industrial norms as stipulated by the relevant authorities
  • Provide sufficient training and evaluation to the workforce to minimise the risks
  • Should adhere to the technical and statutory norms for imported scraps and follow the guidelines as stipulated by the MoEF
  • The credentials of the vehicles shall be verified by the aggregator or the dismantling centre through Vahan Database (National Register e-services of registered vehicles).
  • The facilities can establish separate units for scraps based on composition or chemical analysis to enhance the quality of scraps
  • Treatment of obsolete spare parts should be used as per the guidelines of Central Pollution Control Board (CPCB) AIS 219

Responsibility of the Government

  • The Ministry shall develop standard operating procedures regarding technical, safety and environmental norms
  • Improve capacity building for capital equipment by promoting R&D activities
  • Support the industries through new vocational courses with the support from the Ministry of Skill Development
  • Address the issues pertaining to the quality of scrap and provide support to achieve international standards by working along with the Ministry of Consumer Affairs
  • Collaborate with the Ministry of Finance related to financing, tax incentives, promoting investments in projects on waste management, collection and processing of recyclable materials
  • The Ministry should take enough steps to ensure hazardous waste are routed through government authorised recyclers

Responsibility of the Manufacturer

Role of Automobile Manufacturers

  • The manufacturers should design vehicles that would use less hazardous materials that are associated with disposal & recycling
  • The manufacturers should adhere to the guidelines of Extended Producer Responsibility (EPR)
  • The manufacturers should avoid the use of lead, mercury, cadmium and hexavalent chromium
  • The manufacturers should cater with responsibilities to use increased quality of recycled material in automobiles
  • The automobile manufacturers shall provide the information of dismantling the products within six months of release in the market

Role of White Goods

  • The products shall be designed with safer materials that are easier to recycle
  • Promote to use recycled products  by setting a minimum level for generic identification
  • The products shall provide information regarding dismantling the products after six months
  • Collecting white goods can be facilitated through take-back schemes or through set up of scrapping centre

Guidelines to be Followed

  • Environment (Protection) Act, 1986
  • Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016
  • Guidelines for environmentally sound management of ELVs, Nov’ 2016 laid down by Central Pollution Control Board (CPCB) – AIS 219
  • Solid Wastes Management Rules, 2016
  • Atomic energy ( radiation protection) Rules, 2004
  • The Ozone Depleting Substances (Regulation and Control) Rules, 2000
  • The Batteries (Management and Handling) Rules, 2001
  • The E-waste (Management) Rules 2016
  • The Plastic Waste Management (Amendment) Rules, 2018

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