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Ministry of Steel has issued the steel scrap recycling policy which provides standard guidelines for collecting, dismantling , and shredding activities in an orgamised, safe and environmentally sound manner.

It seeks to promote 6 R's which are principles of

  • Reduce

  • Reuse

  • Recycle

  • Recover

  • Redesign

  • Remanufacture

Through scientific handling by authorized center.

Major sources of steel scrap are the following.

  • Automobile industry.

  • Construction sector.

  • Ship breaking.


  • Steel ministry wants to develop a globally competitive steel industry by adopting state of the art environment friendly technology.

  • According to experts this policy is nothing but “Swachh Bharat 2.0”

  • Country will use scrap and ferrous metals to recycle and remanufacture so that import burden could be reduced.

  • It will also create demand for automobile sector and also clean the scrap spread here and there.

  • Policy also has implementation mechanism how steel will be collected its role procedures including end use of it.

  • There are a lot of commercial vehicles let alone private cars which are 15 years old depicting a poor shadow of public perception and preference of adopting to scrapping.

  • Hence, this policy wants to attract Indian vehicle owners to come forward for scrapping old vehicles to promote “Circular Economy” in steel sector.

  • But this policy will work more efficiently when Ministry of Heavy industries and Ministry of road and transport will come up with a followed up policy on extended producers responsibility ensuring that vehicles manufacturers provide incentives for scrapping owing to the fact that behavior of Indian customers is conservative towards their vehicles.

  • Or the government should introduce some kind of disincentive in case when a vehicle crosses a threshold of lets say 15 years. After that when the vehicles owner comes for registry the fee charged must be increased many folds.

  • Both incentive and disincentive will work to push customers towards scrapping. Hence, giving them a “Behavioral Nudge”.

  • Through this policy the concept of “ waste to wealth” is also promoted. It will help all the stakeholders like producers will benefit from getting additional raw material.

  • Society will benefit from the fact that space occupied by dump yards in urban areas will become idle.

  • It will also enrich the “Natural wealth” of nation by reducing the use of basic raw material and by promoting recycling and reuse.

  • Additional Dump yard centers will also create more jobs in semi urban areas.

  • It will also help achieve the goal set by “National Steel policy 2016” which envisages production capacity of 300 Million tones per annum by 2030

  • It will also reduce the burden on “Current Account Deficit” (CAD) because deficit of scrap is also a problem in India as a matter of fact India had to import scrap of 7 Million tones in 2017 alone.

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