Government announces Steel Waste Recycling Policy, aims to reduce imports; planned scrap centers

New Delhi, November 8 () In an attempt to ensure quality scrap for the steel industry, the government on Friday presented 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 million in 2017-18, while the deficit was 7 MT.

The policy aims to ... promote the circular economy in the steel sector, in addition to promoting formal and scientific collection, dismantling activities and product processing at the end of its useful life that are sources of recyclable materials (ferrous, non-ferrous and other non-metallic wastes) that will lead to resource conservation and energy savings and the creation of an environmentally sound management system for the management of ferrous wastes, the Steel Ministry said in a statement.

National Steel Policy 2017 aims to develop a competitive steel industry worldwide by creating 300 MT steel production capacity per year by 2030 with a contribution of 35-40% of the EAF/IF route (Electric arc furnace/Induction oven).

He said the scrap policy will guarantee the processing and recycling of products in an organized, safe and environmentally friendly manner, in addition to developing a receptive ecosystem and producing high quality ferrous scrap for the production of quality steel, minimizing dependence imports.

The statement says that the policy provides a framework to facilitate and promote the establishment of metal scrapping centers in India, which will ensure the scientific processing and recycling of ferrous wastes generated from various sources and a variety of products.

Among others, it also aims to decongest the Indian cities from the reuse of ferrous scrap, in addition to creating a mechanism to treat waste streams and waste produced by the dismantling and crushing facilities in accordance with the Danger and Other Waste Rules (Management and Transboundary Movement), 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 the scientific management, processing and disposal of all types of recyclable waste, including non-ferrous waste, through authorized centers/facilities.

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

The ministry said its effort is to develop a globally competitive steel industry by adopting cutting-edge green technologies.

While scrap is the main raw material for the secondary sector, the primary sector also uses scrap in the BOF (basic oxygen furnace) charge mix with a melody of 15 percent to improve efficiency, minimize production cost and other process needs.

There is a worldwide trend to increase the production of steel using scrap as the main raw material, since the recycling of scrap helps the conservation of vital natural resources in addition to numerous other benefits. The use of each ton of scrap will save 1.1 tons of iron ore, 630 kg of coking coal and 55 kg of limestone. There will be considerable savings in specific energy consumption as well, according to the statement.

He said scrap availability is a major problem in India and in 2017 the deficit was 7 MT. This was imported at a cost of more than Rs 24,500 crore in 2017-18.

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

Scrap metal is an important input for electric ovens. If quality scrap is provided as a charge to electric furnaces, then furnaces can produce high quality steel. High quality steel scrap will not have impurities if the processing is done with the scrap processing centers and crushers, etc.

The current scrap supply is 25 MT from the domestic unorganized scrap industry and 7 MT from the import of scrap. There is the possibility of taking advantage of these 7 MT of scrap that is currently imported ...

To produce 7 MT more of scrap metal, the country will require 70 scrap processing centers, each with a capacity of 1 lakh tons; This is without disturbing existing dismantling centers. The 70 scrap processing centers will require around 300 collection and decommissioning centers on the assumption that 4 collection and decommissioning centers attend the scrap processing center, the statement said.

In the event that steel production increases to 250 MT, the scrap requirement will increase to 70-80 MT, he said.

This will require around 700 scrap processing centers, that is, 700 crushers. These in turn will be fed by 2800-3000 collection and decommissioning centers throughout the country, the statement said.

He added that it operates in the 4 + 1 hub and radio model, where 4 collection and decommissioning centers must attend 1 scrap processing center, then a unit composed of that type would create 400 jobs. And for 70 units that produce a total of 7 MT of scrap metal, the potential for employment generation would be 2800 people. If the country produced 70 MT, as expected according to NSP 2017, job creation could be in the range of 3 lakh jobs, the statement said. NAM ABM