Archive · 21 Jan 2026
India to finalize steel scrap policy
The Indian government is working on a new policy to recycle steel scrap.
This policy will help use more scrap in making steel, which saves resources and reduces pollution.
The government is also looking at urban waste to find important minerals.
They want to make India a big recycling center for these minerals.
Experts suggest making the policy easy to follow and rewarding people who collect and process scrap.
The government has also started a scheme to help with recycling, and many private companies are interested.
This will help make steel production cleaner and more efficient, and also help India meet its goals for reducing emissions.
The government is finalizing a new national steel scrap recycling policy to replace the 2019 guidelines.
The policy aims to increase scrap usage in steelmaking to align with global averages and support India's net-zero commitments.
Scrap availability in India is expected to rise to 36 million tonnes, with demand increasing due to capacity expansion.
Experts suggest simplifying the vehicle deregistration process and enhancing incentives for end-of-life vehicles to ensure effective policy implementation.
The Mines Ministry is exploring urban waste for critical minerals and may tweak e-waste rules to include these minerals, aiming to position India as a regional recycling hub.
- Who
- Indian Government, Ministry of Steel, Ministry of Mines, Industry Experts
- What
- Finalizing a new national steel scrap recycling policy and exploring urban waste for critical minerals
- When
- Expected within the next couple of months for the policy; ongoing discussions and actions for critical minerals
- Where
- India
- Why
- To increase scrap usage in steelmaking, reduce emissions, support net-zero commitments, and position India as a regional recycling hub for critical minerals
Government and Industry Experts
Environmental and Economic Concerns
Policy Implementation
Government and Industry Experts
The government and industry experts support the new steel scrap recycling policy, emphasizing its role in increasing scrap usage, reducing emissions, and aligning with global standards.
Environmental and Economic Concerns
Some environmental groups and economic analysts express concerns about the policy's potential to disrupt informal waste collection sectors and the need for robust enforcement mechanisms.
Critical Minerals Recycling
Government and Industry Experts
The Mines Ministry advocates for expanding the scope of e-waste rules to include critical minerals, aiming to position India as a regional recycling hub.
Environmental and Economic Concerns
Certain stakeholders argue that the focus should first be on developing a robust processing value chain before expanding the scope of e-waste rules.
- Policy Status
- Finalizing
- Expected Completion
- Next couple of months
- Current Scrap Availability
- 36 million tonnes
- Target Scrap Share
- 31% (global average)
- Steel Capacity Target 2030
- 300 million tonnes
- Steel Capacity Target 2047
- 500 million tonnes
- Net Zero Target
- 2070
- Recycling Scheme Budget
- ₹1,500 crore
- Recycling Scheme Launch Date
- October 2, 2025
- Expected Application Completion
- April 2026
