Parliament Question: Disposal of Steel Scrap

GOVERNMENT OF INDIA MINISTRY OF STEEL LOK SABHA UNSTARRED QUESTION NO. 2641 FOR ANSWER ON 04.08.2026 DISPOSAL OF STEEL SCRAP 2641. SHRI KALI CHARAN SINGH: Will the Minister of STEEL be pleased to state: (a) the current status of implementation of the Steel Scrap Recycling Policy in the country; (b) the details of steel scrap presently lying at various Central Public Sector steel plants and other major integrated steel plants for disposal or recycling, plant-wise, indicating the estimated quantity, value and reasons for accumulation; (c) the details of steel scrap disposed of or recycled during each of the last three years and the current year, plant-wise, along with the revenue realised and whether disposal has been carried out through transparent auction or other approved mechanisms; and (d) the steps taken by the Government to ensure timely disposal of accumulated scrap, promote organized scrap collection and processing, increase the use of recycled scrap in steel production and strengthen the steel scrap recycling ecosystem to improve resource efficiency, reduce dependence on imported scrap and lower carbon emissions? ANSWER THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL (a)&(d): The current status of implementation of Steel Scrap Recycling Policy in the country including the steps taken by the Government for steel scrap recycling to promote the circular economy in the sector is as under:- (i) The Steel Scrap Recycling Policy, 2019 provides a coordination framework with various Ministries to promote recycling of ferrous scrap generated from various sources. (ii) The Ministry of Road Transport and Highways (MoRTH) has formulated the Vehicle Scrapping Policy that includes a system of incentives/disincentives for creation of an ecosystem to phase out older, unfit polluting vehicles. Under the policy, MoRTH has issued rules for Registration and Functions of Vehicle Scrapping Facility (RVSF), which provides the procedures and infrastructure facilities required for de-pollution and dismantling of End-of-Life Vehicles (ELVs) for further recovery of metal and other materials under environmental regulations. As on 24.07.2026, 151 Registered Vehicle Scrapping Facilities (RVSFs) are operational across 23 States/UTs. Contd…..2/-::2:: (iii) The Government of India has notified the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 to ensure safe handling, storage, recycling, utilisation, treatment and disposal of hazardous and other wastes in an environmentally safe manner. (iv) Ministry of Environment, Forest & Climate Change has introduced the Environment Protection (End-of-Life Vehicles) Rules, 2025, which establishes a framework for managing End-of-Life Vehicles (ELVs) in an environmentally sound manner and mandates Extended Producer Responsibility (EPR), requiring vehicle producers to meet annual scrapping targets based on the type of vehicle and materials recovered. (v) Recycling of Ships Act, 2019 has been notified by Ministry of Shipping, Ports and Waterways with aims to regulate and promote the safe and environmentally sound recycling of ships. (b)&(c): Steel is de-regulated sector and hence, the decision for recycling and utilization of ferrous scrap is taken by the steel plants based on their specific requirement and market dynamics. Scrap is continuously generated in steel plants during steel production and milling, which is continuously consumed and surplus scrap is disposed of as per market dynamics. The details of steel scrap disposed off or recycled and accumulated at Central Public Sector Enterprises under the administrative control of Ministry of Steel during the last three years and the current year are as under: - Plant Details of steel scrap recycled or disposed Scrap available 2023-24 2024-25 2025-26 2026-27 in stock (upto (tonnes) 30.06.26) SAIL Recycled 15,51,023 14,42,286 15,24,037 3,71,172 Plants scrap (tonnes) Disposed 1,72,729 2,40,707 2,82,135 58,439 scrap 1,56,782 (tonnes) Rastriya Recycled 3,66,649 2,34,908 3,66,377 1,08,122 Ispat scrap Nigam (tonnes) Limited, 1,81,373 Disposed 22,424 71,318 191 3,564 Visakha- scrap patnam, (tonnes) *****