Govt Mulls Making Scrap Recycling an organized Sector

By 121 News

Chandigarh March 10, 2021:- The Ministry of Mines has recently issued the National Non-Ferrous Metal Scrap Recycling Framework, 2020 covering key non-ferrous metals like Aluminium, Copper, Zinc and Lead. The framework has been released with an objective to promote a formal and well-organized recycling ecosystem in the country which is currently highly unorganized with heavy dependence on imported scrap. Also, it aims to produce high quality scrap for quality secondary production thus minimizing the dependence on imports and encouraging economic wealth creation, job creation and increased contribution to GDP through metal recycling.

This framework is also seen to be prepared in the backdrop of the upcoming Vehicle Scrap page Policy for automobiles, which will ensure sufficient availability of domestic scrap in the country. Some of the key recommendations are setting up of a central authority for recycling of metals as Metal Recycling Authority (MRA). It strongly recommends establishing BIS standards for Quality of scrap used for recycling and recycled products, and standard procedures for recycling and processing of scrap in consonance with MoEFCC rules/guidelines for environment protection.

These recommendations will strengthen efforts of the domestic Aluminium industry demanding formulation of standards for Scrap in the country. The formulation of BIS Standards for Scrap usage, recycling & imports will be the first step to develop the domestic recycling ecosystem and promote a circular economy by utilization of indigenous scrap thereby reducing dependency on imports. Unfortunately, India today, does not have an adequate institutional mechanism for proper collection, sorting and processing of domestic or imported scrap. There are no BIS / quality standards in place for Scrap and the final recycled products.

As per industry sources, the domestic Aluminium industry is facing severe threats from increasing scrap imports, whose share in total Aluminium imports increased from 52% in FY-16 to 67% in FY-21, resulting in Forex outgo- of USD 2 billion (Rs 14,000 Crore). India has become a scrap dumping ground due to the US-China trade war and various Chinese measures to restrict Scrap imports through its National Sword Policy. This has diverted the entire global scrap chain towards India as the USA dumps huge scrap volume to India resulting in 327% rise in scrap imports from the USA in the last 5 years, given the stringent standards for scrap followed by the EU and other developed countries.

Expediting all these action plans will be the key for success of Indian Recycling industry to encourage efficient utilization and recycling of indigenous scrap and boost a domestic circular economy. This will create significant opportunities for revenue generation, creation of jobs and MSMEs and encourage domestic value addition in the country in line with greater vision to make an Aatma Nirbhar Bharat.