 "Metal recycling policy soon: Steel secy")
Sundararajan further announced that there would be a set of policies on end-of-life-cycle commodities and a new institutional mechanism framed as per the industry's requirements, which will best suit the country's requirements too. She further stressed that the recommendations of a Joint Planned Committee (JPC), which was set up to study the scrap processing sector of India, will be considered and the Steel Ministry will commence work on key recommendations for the metal recycling industry. Also acknowledging the need to look into import duty structure on imports of all types of metal scraps that attract about 5 per cent customs duty, which is making imports unviable for scrap importers, she said the first set of policy measures on this issue would be taken up shortly, duly supported by budgetary pronouncements.
Citing that the metal recycling industry in India is set to the heart of new growth paradigms, Sundararajan emphasised that the definition of development and growth has changed in the recent era, which is measured in terms of how efficiently the resources are used and where recycling plays an important role. She said, "While recycling industry in countries like US or China is much ahead of us, India has a long way to go when comes to efficiency of recycling."
Balvinder Kumar, secretary, mines, who also offered his keynote address during the Conference, highlighted the importance of the Recycling Industry for the Indian economy. He maintained that when the global economy is undergoing through a phase of recession and when the resources worldwide are depleting, the country needs to focus on recycling to reasonably use the available resources. Kumar agreed with MRAI's demand of abolishing import duty on metal scrap saying that it made a strong case to seek duty abolishment. Referring to MRAI's demand that the FTA agreements with ASEAN countries be reviewed, Kumar stated a formal communication has been made to the Commerce Ministry to review the FTA agreements and the issue will be reviewed with the Finance and Revenue Ministries, too. He promised that the Government is serious on ensuring the 'ease-of-doing' business and the Prime Minister has asked the Group of Secretaries to freeze Action Plans to address concerns in each area. For the metal recycling sector also, the requisite attention will be paid, he added.
Talking about initiatives in the mines sector, he said that with respect to the Mines & Minerals Development Regulation Act, the Core Committee has identified mineral blocks. "About eight states have issued tenders for 43 mineral blocks -- iron ore, gold, etc. -- and soon, more States will float tenders. By the end of this year, about 70 blocks will be put on auction and exploration of about 100 blocks will be carried out in the next two years," said Balvinder Kumar. He further said that the Government is coming out with a new Policy for Exploration, the draft of which will come out in 45 days. He also stated that the Government has also taken steps to carry out geo-physical surveys.
Sanjay Mehta, president, MRAI, "India has a duty on export scrap, as it is a vital raw material. This becomes a case of inversion. In all the developed countries like USA, Europe, UK, China, there is no such duty applicable. We also demand to abolish SAD on all type of non-ferrous metals scrap. It is impending to the growth of the sector, hence we urged to remove the same. This will give a huge thrust to MSME industries and employment opportunities in India as all scraps are being used for manufacturing only."
MRAI has also urged the Government to set up a pre-shipment inspection infrastructure, mainly scanners, etc. at key ports in India. The need it felt immensely owing to the fact that with the existing standard operating practice worldwide, scrap imports are compulsorily scanned at the port of destination for radio activity and identification of material. In India, the Government has installed scanners at a few ports in India, but many of such scanners are not in working conditions, hence forcing importers to pay inspection charges from their pockets, which are to the tune of Rs 1,100 crore. MRAI believes that instead of bearing such a huge loss of Rs 1,100 crore of pay-out (forex) towards pre-shipment inspection fees, which would entail into FOREX savings. MRAI has also proposed to bring in funds setting up of mechanism at ports.
MRAI also proposed the Government to review Free Trade Agreements (FTAs) with ASEAN Countries.
