The government released Steel Scrap Recycling Policy that aims to reduce imports, conserve resources and save energy. 

Context

The government released Steel Scrap Recycling Policy that aims to reduce imports, conserve resources and save energy. 

About

• The Steel Scrap Policy will ensure processing and recycling of products in an organized, safe and environment friendly manner.
• It will evolve a responsive ecosystem to produce high quality ferrous scrap for quality steel production minimizing the dependency on imports.
• It envisages a framework to facilitate and promote establishment of metal scrapping centers in India that will boost steel production.
• It also aims to decongest the Indian cities from reuse of ferrous scrap, besides creating a mechanism for treating waste streams and residues produced from dismantling and shredding facilities.
• 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 policy is based on "6Rs 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 authorized centers / facility".
• The gap between demand and supply of scrap can be reduced in the future and the country may be self-sufficient by 2030.
• National Steel Policy 2017 aims to develop a globally competitive steel industry by creating 300 MT per annum steel productioncapacity by 2030 with a contribution of 35-40 per cent from EAF/IF (Electric Arc Furnace/Induction Furnace) route.

Significance

• The scrapping policy ensures that quality scrap is made available for the steel industry.
  Scrap is an important input for the 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 centers and by shredders etc.
• It will minimize the cost of production and will lead to costlier steel.
• Conservation of environment, energy and Natural resources: 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 saving in specific energy consumption also.
• The availability of scrap is a major issue in India and in 2017 the deficit was to the tune of 7 MT which gives us an opportunity to exploit it. This was imported at the cost of more than Rs 24,500 crore in 2017-18.
• The current supply of scrap is 25 MT from the domestic unorganized scrap industry and 7 MT from import of scrap. There is potential to harness this huge quantity scarp for steel production.
• It is in tune with the National Steel Policy that aims to develop a globally competitive steel industry by creating 300 MT per annum steel productioncapacity by 2030 with a contribution of 35-40 per cent from EAF/IF (Electric Arc Furnace/Induction Furnace) route.
• It will reduce India’s dependence on steel imports.