Recycling to anchor capacity growth, decarbonisation and raw material security
JAIPUR, Jan 20 (The CONNECT) — As India charts an ambitious expansion of steel capacity to 300 million tonnes by 2030 and 500 million tonnes by 2047, steel scrap is set to play a decisive role in conserving raw materials, cutting coal imports, lowering emissions and supporting the country’s net-zero commitment for 2070, senior government officials said on Monday.
“Scrap currently contributes nearly 21 percent of India’s crude steel production, compared with a global average of around one-third,” said Daya Nidhan Pandey, Joint Secretary, Ministry of Steel, addressing the inaugural session of the 13th International Material Recycling Conference and Exposition (IMRC 2026) in Jaipur. “While scrap consumption in the Indian steel sector is rising, availability is projected to reach nearly 36 million tonnes, clearly indicating that demand will increase sharply as large-scale capacity expansion continues.”
Pandey said the government has taken coordinated policy action to strengthen the scrap ecosystem through the Steel Scrap Recycling Policy 2019, the Vehicle Scrappage Policy, rollout of Registered Vehicle Scrapping Facilities and integration of scrap management with national circular economy initiatives. Recently notified Extended Producer Responsibility (EPR) mandates for end-of-life vehicles and construction and demolition waste are expected to accelerate formal scrap recycling.
Looking ahead, Pandey said India aims to progressively raise the share of scrap in steelmaking towards the global average of 31 percent. “As the country moves towards 300 million tonnes of steel capacity by 2030 and 500 million tonnes by 2047, steel scrap will be central to decarbonisation, as it substitutes iron ore and coking coal while avoiding carbon emissions,” he said.
Highlighting operational challenges, Sanjay Mehta, President, Material Recycling Association of India (MRAI), called for urgent policy rationalisation. “GST on scrap must be reduced to five percent, as current rates are hurting growth and pushing the sector towards non-compliance. Import duty on aluminium scrap should be fully removed, and EPR implementation across e-waste, tyres and plastics needs stronger enforcement,” he said.
Mehta also underscored the social dimension of recycling, noting that nearly one-third of scrap in India originates from ragpickers, households and small workshops. “Lower GST and routing scrap purchases through UPI-based transactions, while discouraging cash at the first level of collection, will help integrate informal workers into the formal economy with dignity,” he said.
On industry trends, Dhawal Shah, Senior Vice President, MRAI, said recycling in India has transitioned from a CSR-driven activity to a core business strategy, with more than 1,400 start-ups operating across waste management and sustainability. “At this pace, recycling could surpass mining well before 2050,” he said.
Zain Nathani, Vice President, MRAI, described recycling as a potential game-changer for India’s industrial growth, while Amar Singh, Secretary General, MRAI, said the sector is poised to make a larger contribution to GDP.
Addressing the role of finance, Rajat Agarwal, Managing Director, Gravita India Limited, said capital was no longer a constraint for responsible recyclers. “Global green funds and ESG-focused investors are actively backing scalable recycling platforms that deliver both financial returns and environmental impact,” he said, adding that Indian recyclers are emerging as globally competitive climate-solution providers.
Organised by MRAI, the three-day conference is being held from January 20–22, 2026, at the Novotel Jaipur & Convention Centre, bringing together policymakers, industry leaders and global stakeholders to discuss recycling’s role in sustainable industrial growth.
During the inaugural session, Lifetime Achievement Awards were presented to Jinesh Shah of Rajhans Impex Pvt. Ltd., Purshottam Parolia of Nihon Ispat Pvt. Ltd., and Hitesh Shah of Mono Steel (India) Limited. The Global Recycler of the Year Award was conferred on Anshul Gupta, Chairman, PAN Gulf International.
