Indian government will unveil the much-awaited steel scrap policy in a week to make the sector cost-effective, boost domestic production and reduce dependence on imports. The Union Cabinet is scheduled to consider the steel scrap policy later next week. The policy will outline norms for quality steel scrap, derived mostly from old vehicles that can be recycled to boost domestic steel output and reduce imports. Union steel minister Chaudhary Birender Singh told Financial Chronicle that “As six million tonnes scrap is currently imported every year, our policy is ready for it. It’s the policy decision of government for which we have sent our proposal to the Cabinet and waiting for the approval”.
Mr Singh added that “Next 25 days are very crucial time for the government… I think it (the policy) will come very soon, maybe this week.”
The government will set up at least two plants that will recycle steel scrap to begin with. One scrap plant may be located either in Haryana or Punjab in the northern region. The second plant could be located either in Gujarat or Maharashtra on the west coast.
Mr Singh said that “Scrap-based steel plants are environment-friendly, energy-efficient and cost effective, adding that 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 western 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 steel, a pre-requisite for ‘Make in India Steel’.”
Mr Singh said that “Availability of scrap is the highest in north India that constitutes about 40 per cent of total scrap.”
Source : ASIAN AGE
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