India’s Ministry of Mines has released a framework that involves major non-ferrous metals such as aluminum, copper, lead, and zinc.
Titled, “The National Non-Ferrous Metal Scrap Recycling Framework for 2020” this proposal intends to boost formal and efficient recycling ecosystems in India to pull the sector out of its current state of disorganization and reduce dependence on scrap imports, according to media reports.
To achieve the latter part of the plan, the framework proposes manufacturing high-quality scrap for secondary production, thus leading to an improved economy, job creation, and added GDP input from metal recycling. The arrangement also supports the approaching auto scrappage policy, that aims to safeguard the ample supply of domestic scrap in the country.
Moreover, the proposal includes creating a Metal Recycling Authority (MRA) for the sector, launching a Bureau of Indian Standards (BIS) of scrap quality for recycling, along with procedures in line with environmental protection.
According to reports, the domestic aluminum industry meets the risk of mounting scrap imports, as the total import share of the metal has moved from 52pc in 2016 to 67pc in 2021 entailing Rs140bn ($1.93bn) in expenditures.
The plan outlines a timeline for numerous stakeholders to organize India’s recycling industry over the next three years. The MRA is slated to be set up by Q1 2022 with quality standards, certification, and recycling procedures implemented by Q2 or Q3 2022.
Based on media reports, India is described as a scrap dumping ground due to trading conflicts between the US and China that led to China’s restrictive actions on scrap imports through national policy. This drove global suppliers to redirect scrap to India.
In fact, the US unloads large volumes of scrap to India accounting for 327pc more scrap imports from the US over the last five years, also considering rigid scrap guidelines in the EU and other countries.
($1 = Rs72.73)