To produce more scrap, India mulling over National scrap policy, says Steel minister

The government is formulating a draft National Scrap Policy, Union Steel Minister Chaudhary Birender Singh said Monday. Currently, the country's requirement of scrap is around 8.3 million tonne (MT) and a large portion of the requirement is met through imports, he said.

"A National Scrap Policy is being drafted which will be ready in a few months. This will make available nearly 7 MT scrap in the country. Steel produced out of scrap is of good quality and is environment-friendly," the minister said. The government is also planning to set up scrap-based steel plants in north and west parts of India to augment the country's production capacity, Singh had earlier said.

Stressing that the scrap-based steel plants are environment-friendly, energy-efficient and cost-effective, he said these plants would be on the lines of 'melt and manufacture' steel technology used in the US. "I would like you to deliberate on the cost-benefit analysis of setting up scrap-based steel plants in north and west India. These regions are important from the perspective of scrap-availability and steel import hubs. The plants will have the capability to produce special high-grade steels, a pre-requisite for 'Make in Steel'," he had said.

He had also said India imports around six million tonnes of scrap steel every year and is the second-largest importer of scrap after Turkey, adding that by 2025, the country will be able to generate 7.5 million tonnes of scrap every year.