- India has emerged as the world’s second largest scrap importer.Turkey is still the world’s largest recycler and scrap importer of the world.
- According to the data,the scrap imports have increased by 35% in the first half of this year to 3.87 million tonnes.
- The imports have increased due to slowdown in the domestic steel industry and cheap price of imported scrap metals.
- However,India’s Internal scrap market holds huge potential as India will have 22 million obsolete vehicles by 2025 from 8.7 million at present.
- Experts have said that incentivisation for scrapping old vehicles can be one of the solutions.They suggested that government could waive off registration charges of a new car provided the buyer produces a certificate proving scrapping of his old car.
- Government has also recently published its draft steel scrap policy that aims to promote scrap processing to supply the scrap towards electric arc furnace and induction furnace-based steelmaking.
- Union road ministry has also come out with a vehicle scrapping policy, which has proposed a mandatory cap of 20 years on the life of all commercial vehicles starting in 2020.However,it has been delayed as it is going through a consultative process with the state governments.
