Mumbai: The Mines Ministry will look into the issue of import duty on scrap, special additional duty and trade pacts with countries, Union Minister Vishnu Deo Sai said today.
The Metals Recycling Association of India said that metal recycling has been badly affected by heavy import duty, Special Additional Duty (SAD) regime and certain Free Trade Agreements (FTAs) with countries.
Addressing a conference here he said that his ministry will "coordinate with the Finance Ministry and look into the aspects of import duty on scarp, SAD and FTAs with a view to solve the problems being faced by Indian Metal Recycling Industry."
The Ministry will also look into the recommendations of the Joint Parliamentary Committee, Sai said.
The association demanded that government should draft a Metal Recycling Policy to grant industry status to the sector and rationalise duty structures to make it a globally competitive industry.
It also urged the Ministry of Steel and Mines to consider the removal of import duty and SAD that is levied on imported scrap products on immediate basis in the forthcoming budget.
It pointed out that immediate intervention by government will only save the already bleeding industry from dying.
"Metal recycling industry is certainly important as it converts waste material into wealth and thus protects environment, saves energy, health Indian metal recycling industry, which recycles metals like steel, aluminium, copper, zinc; majorly from automotive, power, infrastructure, construction and white goods industry, and natural resources," the minister said.
The local metal recycling industry is set to register an annual growth of 11.4 per till the year 2020 and considering the growth potential, it needs immediate policy intervention, noted the Report 'Metal Recycling Sector: Contributor to National Wealth' published by Frost & Sullivan at the 'Metal Recycling Conference' organised by Metal Recycling Association of India (MRAI), an apex body of India's ferrous and non-ferrous metals recycling industry.
As per the report, today, India's annual scrap consumption is Rs 750 billion (20.40 million tonnes) and it imports 6.48 million tonnes of scrap at an estimated value of Rs 390 billion to become the world's third largest importer of scrap. With a CAGR of 11.4 percent, the sector is poised to take the consumption to 30.03 million tonnes by 2020.
Surprisingly, India's recycling rate is less than 20 percent where the world over, recycling has been accepted as a sustainable business model yielding higher revenues entailing saving the environment and tremendous amount of energy.
The association also requested the Government of Maharashtra to create special recycling zones in the State.
Subhash Desai, Minister of Industries, Maharashtra Government said, "As metal recycling industry has suggested to consider allocation of special recycling zones for Metal recycling industry in the state, we will review the proposal."
