Parliament Question: Status of Steel Scrap Recycling Policy

GOVERNMENT OF INDIA MINISTRY OF STEEL LOK SABHA UNSTARRED QUESTION NO. 2571 FOR ANSWER ON 04.08.2026 STATUS OF STEEL SCRAP RECYCLING POLICY 2571. SHRI SHANKAR LALWANI: SHRI ANANTA NAYAK: SMT. KAMALJEET SEHRAWAT: SMT. MALVIKA DEVI: SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN: SHRI SUNIL KUMAR: 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 recycling capacity created and the quantity of steel scrap recycled so far, including the corresponding details for the State of Odisha; (c) the steps taken to promote organised scrap collection, processing and utilisation of recycled steel scrap in steel making to reduce carbon emissions, including initiatives undertaken in Odisha and the Keonjhar Lok Sabha Constituency; (d) the strategy of the Government to develop a robust ecosystem for steel scrap recycling, improve resource efficiency and encourage establishment of recycling facilities in Odisha, particularly in the Keonjhar Lok Sabha Constituency; and (e) the manner in which the steel scrap generated from Bokaro Steel Plant and Burnpur Steel Plant under Steel Authority of India Limited has been recycled or auctioned during the last three years? ANSWER THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL (a),(c)&(d): The current status of implementation of Steel Scrap Recycling Policy in the country including the steps taken by the Government to promote organized scrap collection, processing and utilization of recycled steel scrap in steel making as well as develop robust ecosystem for steel scrap recycling to improve resource efficiency and reduce carbon emissions in steel sector across the country including Odisha and Keonjhar Lok Sabha Constituency are 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. Contd…..2/-::2:: (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. (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) During Financial Year 2025-26, total 36 million tonnes ferrous scrap was used for production of steel, of which approximately 28 million tonnes scrap generated domestically. The details of Registered Vehicle Scrapping Facilities (RVSFs) across the country including Odisha is available on the Ministry of Road Transport and Highways’ parivahan portal at the URL given below: ‘https://vscrap.parivahan.gov.in/vehiclescrap/vahan/rvsfdetails.xhtml’. (e) The manner in which the steel scrap generated from Bokaro Steel Plant and Burnpur Steel Plant under Steel Authority of India Limited has been recycled or auctioned during the last three years is given below: Bokaro Steel Plant: Steel scrap generated at Bokaro Steel Plant has been systematically recovered, processed and fully recycled and utilized in its Steel Melting Shop for steel production. No internally generated steel scrap has been disposed of through auction during last three years. IISCO Steel Plant, Burnpur: Steel scrap generated at IISCO Steel Plant has been systematically recovered, processed and managed. The scrap has been primarily recycled through the Steel Melting Shop. Surplus or non-utilisable scrap, wherever required, has been disposed of through Inter-Plant Transfer or transparent auction processes to ensure optimum resource utilization and value realization. *****