Scrap share in steelmaking expected to rise as India scales production, IMRC 2026 hears

Daya Nidhan Pandey cited current and projected scrap availability while addressing the conference

Jaipur, January 20, 2026: The share of scrap in India’s steelmaking process is expected to rise as the country continues to expand its steel production capacity, according to remarks made at the 13th International Material Recycling Conference and Exposition.
Addressing the inaugural session of International Material Recycling Conference and Exposition 2026, Daya Nidhan Pandey, Joint Secretary, Ministry of Steel, said scrap currently contributes nearly 21 percent of India’s crude steel production, compared to a global average of around one-third. He added that scrap availability in India is estimated to reach nearly 36 million tonnes, indicating a sharp rise in demand as large-scale capacity expansion continues.

Pandey referred to recent policy measures, including the Steel Scrap Recycling Policy 2019, the Vehicle Scrappage Policy, the rollout of Registered Vehicle Scrapping Facilities, and the integration of scrap management with national circular economy initiatives. He said newly notified Extended Producer Responsibility mandates for end-of-life vehicles and construction and demolition waste are expected to accelerate formal scrap recycling.
Looking ahead, Pandey said India is aiming to progressively raise the share of scrap in steelmaking toward the global average of 31 percent. He said that as the country moves toward 300 million tonnes of steel capacity by 2030 and 500 million tonnes by 2047, scrap-based steelmaking will play a key role in conserving raw materials, reducing coal imports, lowering emissions, and supporting India’s net zero target for 2070.

He also said scrap-based steel production supports decarbonisation by substituting iron ore and coking coal while avoiding carbon emissions. With India targeting 300 million tonnes of crude steel capacity by 2030–31, recycled steel scrap consumption is expected to gain further momentum.
Highlighting operational challenges, Sanjay Mehta, President of Material Recycling Association of India, called for policy rationalisation, including a reduction in GST on scrap to 5 percent. He said high tax rates are affecting sector growth and compliance, and added that import duty on aluminium scrap should be removed. He also pointed to gaps in the implementation of Extended Producer Responsibility across e-waste, tyres, and plastics.

Mehta said nearly one-third of scrap in India originates from ragpickers, households, and small workshops. He added that routing scrap purchases from the unorganised sector through UPI-based transactions, while discouraging cash at the first level of collection, would help bring workers into the formal economy.
Speaking on industry trends, Dhawal Shah, Senior Vice President, MRAI, said recycling in India has shifted from being a CSR-linked activity to a core business strategy. He said the country now has more than 1,400 startups operating across waste management and sustainability, and that recycling could surpass mining as an industry well before 2050.

Other speakers at the session included Zain Nathani, Amar Singh, and Rajat Agarwal, Managing Director of Gravita India Limited. Agarwal said global green funds and ESG-focused investors are actively backing scalable recycling platforms, adding that capital availability is no longer a constraint for responsible recyclers.
Organised by the Material Recycling Association of India, the three-day conference is being held from January 20 to 22, 2026, at the Novotel Jaipur and Convention Centre, Jaipur.

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