In a bid to establish quality scrap for the steel industry, the government has come out with a Steel Scrap Recycling Policy that aims to reduce imports, conserve resources and save energy.

The country’s steel scrap imports were valued at Rs 24,500 crore in 2017-18, while the deficit was to the tune of 7 MT.

The National Steel Policy 2017 aims to develop a globally competitive steel industry by creating 300 MT per annum production capacity by 2030 with a contribution of 35-40 per cent from EAF/IF (Electric Arc Furnace/Induction Furnace) route.

Key features of the policy

* The policy aims to promote a circular economy in the steel sector, besides promoting a formal and scientific collection, dismantling and processing activities for end-of-life products that are sources of recyclable (ferrous, non-ferrous and other non-metallic) scraps that will lead to resource conservation and energy savings and setting up of an environmentally sound management system for handling ferrous scrap.

* The scrap policy will ensure processing and recycling of products in an organised, safe and environment-friendly manner, besides evolving a responsive ecosystem and producing high-quality ferrous scrap for quality steel production, minimising the dependency on imports.

* The policy envisages a framework to facilitate and promote the establishment of metal scrapping centres, which will ensure scientific processing and recycling of ferrous scrap generated from various sources and a variety of products.

* It also aims to decongest cities from reuse of ferrous scrap, besides creating a mechanism for treating waste streams and residues produced from dismantling and shredding facilities in compliance with the Hazardous & Other Wastes (Management & Transboundary Movement) Rules, 2016, issued by the Ministry of Environment and Forests.

* The policy is based on the 6R principles of reduce, reuse, recycle, recover, redesign and remanufacture through scientific handling, processing and disposal of all types of recyclable scraps including non-ferrous scraps, through authorised centres / facilities.

* The gap between demand and supply of scrap can be reduced in the future and the country may be self-sufficient by 2030.

* Although scrap is the main raw material for the secondary sector, the primary sector also uses scrap in the charge mix of Basic Oxygen Furnace to the tune of 15 per cent to improve efficiency, minimise cost of production and other process needs.

The need for a policy

* There is a worldwide trend to increase steel production using scrap as the main raw material as recycling of scrap helps in conservation of vital natural resources besides other numerous benefits. The use of every tonne of scrap shall save 1.1 tonne of iron ore, 630 kg of coking coal and 55 kg of limestone. There shall be considerable savings in specific energy consumption also.

* The availability of scrap is a major issue and in 2017 the deficit was to the tune of 7 MT. This was imported at a cost of more than Rs 24,500 crore in 2017-18.

* The government said the scrapping policy shall ensure that quality scrap is available for the steel industry.

* Scrap is an important input for electric furnaces. If quality scrap is provided as the charge to the electric furnaces, then the furnaces can produce high-grade steel. High-grade steel scrap shall not have the impurities if processing is done with the scrap processing centres and by shredders, etc.

* The current supply of scrap is 25 MT from the domestic unorganised scrap industry and 7 MT from import of scrap. There is potential to harness this 7 MT of scrap that is currently being imported.

* To produce 7 MT more of scrap, the country shall require 70 scrap processing centres each with a capacity of 1 lakh tonnes; this is without disturbing the existing dismantling centres. The 70 scrap processing centres shall require about 300 collections and dismantling centres on the presumption that four collecting and dismantling centres cater to scrap processing centre.

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