India Will Make At Least 8% Of The Recycle Mandatory For Automakers Using Steel

India will make at least 8% of steel recycling mandatory for the automakers. The companies have mixed views on this regulation. It will help increase scarp availability, as India currently imports 11.2 metric tonnes of steep scrap in FY24. Thus, the industry is in demand. Steel companies also believe that scrap availability will help them achieve their aim of reducing their carbon footprint. Even a small contribution to rough steel recycling can be a first step towards something fruitful.

Automakers Using Steel Will Have To Mandatory Recycle At Least 8% Of The Steel From Old Vehicles

The regulation will focus on making it mandatory for the steel company to recycle the steel from the old vehicles. The FY 26 will focus on recycling at least 8% of the steel from the market in 2005-06. It will further go up in the coming years. According to the draft regulations, it is currently 10%. However, the companies have to recycle at least 8% of their steel from the old vehicles they manufacture. The regulations state that it may increase to 30% by 2025-36. However, the government expects to keep the number at 18%.

Tata Steel’s CEO has also given a positive response to the recycling initiative. The company is among the top companies in the field of steel manufacturing. It is also preferring the decision to recycle. Ranjan Dhar who is the director and vice president of the sales and marketing department of AM/NS India also appreciated the initiative of recycling. The country might focus on reducing the import of the scraps. Thus, the scrap availability and demand within the country will be more fruitful in meeting the long-term sustainability goals.

Every major manufacturer and the Indian government is moving towards decarbonisation. The reduction of carbon footprint will be a sustainable goal for the development. The domestic scrap availability will promote reduced carbon footprints. Apart from that, it will also encourage the citizens to move towards the recycling system. Indians often keep their vehicles for more than 10 years. However, the government prefers to not use such old models as they contribute to environmental issues.

The Indian income systems and levels also make it difficult for them to buy new models frequently. Thus, the companies introducing incentives for them will encourage them to return the old vehicles for recycling. This increase in recycling by the big automating players will contribute to the creation of 0.2-0.25 million tonnes of steel scrap. Stay tuned for more information.