Report on Steel Scrap Recycling Policy

Report on Steel Scrap Recycling Policy

Why in News Report on Steel Scrap Recycling Policy? 

The Standing Committee on Coal Mines and Steel has presented its report on the Steel Scrap Recycling Policy in August 2025. The report brings fresh focus on recycling in the steel sector. It reflects the committee’s views on improving sustainability and efficient resource use in the industry.

Standing Committee’s Key Recommendations on Steel Scrap Recycling Policy

• Need for a Comprehensive Steel Scrap Database: The committee highlighted the absence of a reliable and updated database for the steel scrap sector in India. It suggested the creation of a dedicated digital portal that can serve as a single source for all scrap-related information. This platform should include details such as annual scrap generation, sector-wise consumption, imports, and exports. The portal should also present regular updates on government policies, industry programmes, and the benefits of steel scrap usage.

• Nodal Authority: To streamline data collection and ensure policy coherence, the committee recommended that the Ministry of Steel be appointed as the primary authority for steel scrap matters. This role would include capturing, compiling, updating, and distributing data at both the state and national levels. By functioning as a central data hub, the Ministry could respond to all queries related to scrap generation, usage, and trade. 

• Formalisation of Informal Scrap Markets: India’s steel scrap supply is often disrupted due to the unorganised nature of scrap markets. The committee observed that the shortage of quality scrap hampers steel production using recycled material. It recommended that steps be taken to integrate informal scrap dealers into the formal economy. 

• Granting Industry Status: The committee emphasised that the recycling sector, especially steel scrap recycling, deserves formal recognition as an industry. Recognising scrap recycling as an industry would not just be about tax incentives but would accelerate its shift to the organised sector. Such a move could attract domestic and foreign investment, generate jobs, and encourage skill-based training. 

• Certification Programmes: To meet the growing workforce demand in a formalised scrap sector, the committee proposed training and certification through the National Skill Development Corporation (NSDC). Specialised courses focusing on collection, segregation, sorting, refining, and safe disposal of steel scrap would prepare workers for industry requirements. Introducing such courses in 2025 could ensure that by the next decade, India would have a skilled manpower base.

• Promoting Modern Technology: The committee advised that scrap processing centres should adopt advanced tools and methods to improve efficiency and quality. Non-fiscal incentives could be offered to encourage the use of artificial intelligence-powered optical sensors for sorting scrap, blockchain systems for traceability, and digital trading platforms connecting aggregators directly with steel mills. 

• Occupational Safety: The steel scrap sector employs a large number of unskilled and semi-skilled workers, especially in dismantling and sorting activities. As the industry moves towards formalisation, the committee stressed the urgent need for a policy framework on occupational safety and health standards. Clear regulations should be introduced to protect workers from hazards such as injuries, and exposure to toxic materials.

About Standing Committee on Coal, Mines and Steel

• Formation: The Standing Committee on Coal, Mines and Steel is part of the Departmentally Related Standing Committees that assist the Indian Parliament. It is tasked with reviewing and monitoring the work of the Ministry of Coal, the Ministry of Mines, and the Ministry of Steel.

• Standing Committees in the current structure were introduced in 1993 to improve the quality of parliamentary work. 

• This committee is newly constituted each year and functions according to the provisions outlined in the Rules of Procedure and Conduct of Business in the Lok Sabha.

• Its meetings are held throughout the year, and reports are presented in both Lok Sabha and Rajya Sabha. 

• The present committee for the 2024–25 term was formed in September 2024. 

• Members: The committee consists of 31 members. Out of these, 21 members are from the Lok Sabha and 10 members are from the Rajya Sabha. 

• • • Members are nominated by the Speaker of the Lok Sabha and the Chairman of the Rajya Sabha. 
    • All members of Parliament, regardless of political party, can be part of the committee, which ensures diverse representation. 
    • The Speaker of the Lok Sabha selects the Chairperson from among the committee’s Lok Sabha members.
    • Shri Anurag Singh Thakur, Member of Parliament, has been serving as the Chairperson of the committee during this term. 
    • The term of office for the members is one year, after which the committee is reconstituted.

• Objectives: The primary objective of the Standing Committee on Coal, Mines and Steel is to review the policies, functioning, and performance of the three ministries under its jurisdiction. 

• The committee examines demands for grants of each ministry during the budget session and submits its reports to Parliament. 

• It also studies various bills, policy documents, and long-term plans related to coal mining, mineral development, and steel production. 

• The committee works to ensure transparency, efficiency, and sustainability in these sectors. 

• It plays a key role in suggesting reforms for environmental protection, technology adoption, and safety standards in mines and steel plants. 

• • It also works to encourage a Circular Economy approach, focusing on the 6Rs – Reduce, Reuse, Recycle, Recover, Redesign, and Remanufacture.