The steel industry contributes around 2 per cent to India’s GDP (gross domestic product) and will act as a foundation for the country to meet its ambition to double its GDP and per capita income to US $6.69 trillion and $4,418, respectively, by 2030. The National Steel Policy, 2017, aims to provide this foundation by increasing India’s steel production capacity from 122 million tonnes (MT) in 2015 to 300 MT by 2030. The urgency to address global excess capacity and cut carbon emissions is driving a shift in how industries operate. The steel industry, which accounts for approximately 8 per cent of global emissions, is no exception. As India adds new steel production capacity in the coming years to meet growing domestic demand, it is uniquely positioned to embrace sustainable steel production. Aligning with global sustainability goals will offer dual advantages: reducing environmental impact while boosting economic viability.The role of the circular economy and the use of ferrous scrap offer a pathway to emission reductions while supporting economically viable steel production practices. Every tonne of scrap used in steel production saves 1.1 tonnes of iron ore, 630 kg of coking coal and 55 kg of limestone. It reduces water usage by 40 per cent and greenhouse gas emissions by 58 per cent. Energy savings are also notable, with a reduction from 14 megajoules (MJ) per kg in traditional methods to less than 11 MJ per kg via the electric-arc or induction furnace routes. Considering the positive impacts of steel scrap, India rolled out the Steel Scrap Recycling Policy in 2019. It is built on the premise that scrap steel, once viewed as waste, is a resource that can reduce the industry’s environmental footprint. Before the economic reforms of 1991, India’s steel consumption was as low as 17 MT per annum, compared to 125 MT in 2023. Given that the average lifecycle of steel products is 46 years (though with significant variability, depending on the steel product), much of the ferrous material is yet to reach its end-of-life for scrap usage. Hence, India faces a challenge in securing steel scrap supply. This also led to import of around 10.47 MT of ferrous scrap in 2023. This represents a significant increase from 6.84 million tonnes in 2022, reflecting the growing demand for steel scrap in the country’s production processes.To address this scarcity, the policy aims to elevate domestic scrap supplies for India to become completely self-sufficient by 2030. Furthermore, it aims to integrate the informal recycling industry and improve scrap availability through organised collection. This includes establishing organised scrapping centres that adhere to strict environmental stand-ards. These centres connect smaller scrap aggregators to major processing facilities, thereby optimising the scrap supply chain for quality and efficiency. The integration of new green steelmaking technologies, such as hydrogen-based and direct reduced iron processes, is also
Mar. Gen 7th, 2025
