Indian Metal Recycling body seeks industry status and rationalisation of duties to make the sector globally competitive

INDIA January 22 2016 11:25 AM

MUMBAI (Scrap Register): Indian Metal Recycling Industry is set to register an annual growth of 11.4 per till the year 2020 and considering the growth potential, it needs immediate policy intervention, noted the Report ‘Metal Recycling Sector: Contributor to National Wealth’ published by Frost & Sullivan at the ‘Metal Recycling Conference’ organised by Metal Recycling Association of India (MRAI), an apex body of India’s ferrous and non-ferrous metals recycling industry. 

A three-day Conference titled ‘Metal Recycling in India Vision Forward – A Clean, Green India’ commenced here in New Delhi on Thursday. Narendra Singh Tomar, Union Minister for Steel, Government of India inaugurated the Conference. Dignitaries from the Government and stakeholders of Metal Recycling Industry were present at the inauguration. 

On the Second Day, Aruna Sundararajan, IAS, Secretary, Ministry of Steel, Balvinder Kumar, IAS, Secretary, Ministry of Mines, Poonam Maddam, Hon’ble MP, Jamnagar will address the Conference. 

Other subject experts and eminent speakers will speak on important topics like: Abolishment of import duty on imports of metal scraps, Review of FTA with ASEAN countries, Pre-Shipment Inspection Certification & Issues Involved, Absence of General Trade Practices or Guidelines For Shipping Lines and Awarding Industry Status to Recycling Industry. 

Sanjay Mehta, President, MRAI welcomed the guests. Mr. Ranjit Baxi, President, Bureau of International Recycling (BIR), an internationally renowned metal recycling expert will also be present.

The Report on metals recycling industry noted that the potential of Metal Recycling industry is not fully utilised and hence, there is more burden on primary production resulting in depletion of natural resources. A strong policy regime can not only turn the fortunes of this industry favourably by throwing up immense economic opportunities; but will also help convert waste into wealth for the nation, said the Report.

Today, India’s annual scrap consumption is INR 750 billion (20.40 million tonnes) and it imports 6.48 million tonnes of scrap at an estimated value of INR 390 billion to become the world’s third largest importer of scrap. With a CAGR of 11.4%, the sector is poised to take the consumption to 30.03 million tonnes by 2020. Surprisingly, India’s recycling rate is less than 20% where the world over, recycling has been accepted as a sustainable business model yielding higher revenues entailing saving the environment and tremendous amount of energy. 

“With a view to ensure the fast track growth of the industry, Metal Industry Association of India has sought a framing and implementation of Metal Recycling Policy duly supported by an ‘industry-status’ recognition. Metal Recycling contributes about two to three per cent to the Indian GDP. As the industry opens up and grows at a CAGR of 11.4 per cent, this will increase the contribution of Metals Recycling to the Indian GDP and ensure sustainable growth coupled with preservation of natural resources,” said Sanjay Mehta, President, Metal Recycling Association of India. 

Talking about expectations from the Government, Mehta further added, “When Global Recycling Industry generates an annual revenue of $ 500 billion, India is lagging much behind. Government should immediately intervene and draft a Metal Recycling Policy to grant industry status to this sector and rationalise duty structures to make it a globally competitive industry.”

“With this, the Government will be a net revenue earner and it will save the environment and energy. With a better flow of raw material in manufacturing through recycling of metals, the industry can thus help achieve Government its mission of Swatch Bharat Abhiyaan and Make in India,” Mehta added.

Indian Metal Recycling Industry, which recycles metals like steel, aluminium, copper, zinc; majorly from automotive, power, infrastructure, construction and white goods industry.