On 4 August 2025, the Standing Committee on Coal, Mines and Steel, chaired by Shri Anurag Singh Thakur, presented its Eighth Report on the Steel Scrap Recycling Policy (SSRP) to the Lok Sabha .The report marks a critical juncture in India's efforts to evolve its steel sector into a sustainable, circular, and formally organized ecosystem.
Key Observations & Recommendations
1. Absence of Robust Data Infrastructure
The Committee underscored a glaring gap in
reliable, comprehensive data regarding steel scrap on its generation, usage,
imports, exports, and sectoral distribution. Consequently, it recommended the
creation of a dedicated web portal,
managed by the Ministry of Steel, to
host real-time, state-wise, sector-wise scrap data and international
comparisons
2. Ministry of Steel as the Nodal Agency
To streamline governance and data flow, the
Committee advised that the Ministry of Steel should be designated as the nodal authority responsible for
collecting, maintaining, and disseminating all scrap-related information
3. Formalizing the Informal Scrap Sector
India's steel scrap ecosystem is dominated by
informal playerskabadiwallahs, small dismantlers, and local dealers. The
Committee stressed the urgency of formalizing
this sector, suggesting a roadmap that includes organizing them into cooperatives. This shift is expected to
improve scrap availability, ensure quality, and facilitate timely supply for
steel production
4. Granting ‘Industry Status’ to Scrap Recycling
Recognizing that tax incentives alone won’t
catalyze change, the Committee proposed according industry status to scrap recycling, thereby unlocking investment,
boosting employment, encouraging skill development, and fostering innovation in
this domain
5. Skill Development & Certification
The report highlighted the need to build
capacity in the workforce involved in scrap handling and recycling. It
recommended that the National Skill
Development Corporation (NSDC) introduce certification courses covering
collection, segregation, processing, and eco‑friendly disposal of scrap
6. Technological Upgradation of Processing
Centres
The Committee urged the adoption of advanced
technologies such as AI-powered optical
sensors, blockchain for traceability,
and digital platforms to enhance
quality control, prevent theft, and better connect scrap aggregators with steel
mills
7. Ensuring Occupational Safety
Given the hazardous nature of scrap
processing, especially in informal settings, the report recommended robust occupational health and safety norms,
along with well-defined regulations to protect workers across the recycling
value chain
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Context within India’s Circular
and Steel Sector Policies
● SSRP (2019): Originally rolled out in 2019, this policy
envisaged a hub-and-spoke model
linking local collection and dismantling centers to regional processing hubs,
supported by logistics infrastructure to streamline ferrous scrap recycling
● Broader Circular Economy Drive: The policy ties into India’s larger circular
economy ambitions, which include measures like the Vehicle Scrapping Policy (MoRTH) and the Environment Protection (End‑of‑Life Vehicles) Rules, 2025,
emphasizing Extended Producer
Responsibility (EPR)
● Global Standards and India’s Decarbonization
Goals: In line
with global trends, increased use of steel scrap supports decarbonization by reducing reliance on virgin raw materials.
Circular practices like reducing, reusing, and recycling are vital for meeting
net-zero targets
Conclusion
The 2025
Standing Committee report on SSRP offers a comprehensive blueprint to transform
India’s scrap recycling ecosystem from informal, data-scarce operations to a
structured, technology-enabled, safe, and sustainable industry. Through
institutional clarity, capacity building, and technological integration, India
can deepen circularity in its steel sector, aligning with both environmental
imperatives and industrial competitiveness. For UPSC aspirants, it stands as a
potent case study of multi-sectoral policymaking that seamlessly weaves
together governance, economy, technology, and environment
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