India's steel sector plays a central role in the economy, but also accounts for 10–12% of the country's greenhouse gas emissions, underscoring the need for a rapid transition towards sustainability. Speaking at the inaugural session of MRAI's IMRC Convention and Exhibition, which began at Jaipur on January 20, Daya Nidhan Pandey, Joint Secretary, Ministry of Steel, highlighted the government policies to make the industry green and competitive as the world moves towards sustainability. 

Pandey stated that India was the only major country to record double-digit growth, with finished steel consumption rising 11.7% over the past four years. 

"Under the National Steel Policy 2017, we aim to reach 300 million tonnes of crude steel capacity by 2030–31, up from 144.3 million tonnes produced in FY 2023–24. Scrap currently accounts for about 9% of the metallic charge in BF–BOF routes, 39% in induction furnaces, and 13% in electric arc furnaces, compared with a global scrap share of roughly one-third. As a highly circular material, steel offers significant environmental gains: every tonne of recycled scrap avoids around 1.5 tonnes of CO₂ emissions and replaces substantial quantities of iron ore and coal," he said, speaking at the conference organised by the Material Recycling Association of India ( MRAI). 

Pandey also stated that India’s scrap consumption has risen steadily since FY 2018, except during the pandemic, with availability estimated at 33 million tonnes in FY 2024 and projected to reach about 36 million tonnes in FY 2025. Policy measures, including the Steel Scrap Recycling Policy 2019, the Vehicle Scrappage Policy, a nationwide network of registered scrapping facilities, and Extended Producer Responsibility mandates for end-of-life vehicles and construction and demolition waste, reflect a clear shift toward treating scrap as a strategic industrial input. While domestic scrap availability remains constrained due to the long service life of steel products, this is a transitional challenge. Scrap generation is expected to accelerate as infrastructure, vehicles, ships, and industrial assets reach the end of life. Meeting future demand will require stronger enforcement, modernized recycling infrastructure, and assured, cost-competitive scrap markets. As India moves toward steel capacity targets of 300 million tonnes by 2030 and 500 million tonnes by 2047, scrap will be central to building a cleaner, more resilient, and globally competitive steel sector.

Demand for abolition of import duty on aluminium scrap

Flagging trade and regulatory concerns at the conference, MRAI reiterated its demand for the abolition of 2.5% duty on imports of aluminium scrap, considering its importance in the recycling sector.  Sanjay Mehta, the president of MRAI, also highlighted the interventions that could aid the recycling sector in India. 

He expressed concerns over the impact of the European Waste Shipment Regulations, which are set to take effect in 2027 on India's metal sector. Mehta has urged the Indian government and the Ministry of Commerce to engage in a discussion with the European Union to ensure the flow of recyclable materials into the country, considering the growth in its consumption.  

He highlighted multiple regulatory and fiscal challenges affecting India’s scrap and recycling ecosystem. He pointed to compliance burdens arising from SIMS and NFMIMS requirements, which apply even to scrap importers despite the absence of import duties, forcing companies to dedicate resources to filing lengthy forms on ministry portals and disrupting day-to-day operations. Mehta urged the government to abolish these formalities, arguing that scrap is an essential raw material for India’s manufacturing and green transition. 

Concern over high GST

Concerns were also raised over the high GST on scrap, which the MRAI president said industry representatives have been contesting since its implementation, calling for a reduction to 5% in line with multiple research submissions to the government.

Weak enforcement of Extended Producer Responsibility (EPR) across e-waste, tyre, and plastic sectors was flagged as another structural issue, with poor implementation undermining recycling outcomes despite efforts by the MoEFCC and CPCB. Mehta also underscored the human dimension of recycling, noting that nearly one-third of scrap collection comes from rag pickers, small workshops, households, and municipal sorting, many of whom operate outside formal systems due to high GST and compliance barriers. Lower taxes and the use of UPI-based payments at the first stage of scrap collection were proposed as tools to formalise the sector, improve traceability, and promote inclusion. He further urged the government to accelerate green steel procurement at both the central and state levels to support circularity and decarbonisation goals.