The Rs.750 bn Indian metal recycling sector, which deals with steel, aluminium, copper and zinc for automotive, power, infrastructure and construction fields, needs industry status to boost the segment poised for a 11.4 percent growth, said a report released Thursday.
The report by Frost & Sullivan, entitled "Metal Recycling Sector: Contributor to National Wealth", was released by union Minister of State for Steels and Mines V.D. Sai at a conference organised by Metal Recycling Association of India (MRAI).
It stated that the potential of the metal recycling industry is not fully utilized and there is more burden on primary production, resulting depletion of natural resources.
"A strong policy regime can not only turn the fortunes of the industry by throwing up immense economic opportunities but also help convert waste into wealth for the nation," the report noted, seeking "industry status" for this sector.
Citing hard statistics, the report said India's annual scrap consumption is 20.40 million tonnes worth Rs.750 billion.
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Besides, the country imports 6.48 million tonnes scrap valued at around Rs.390 billion, making it the world's third largest importer of scrap.
With an annual growth of 11.4 percent, the sector is poised to raise consumption levels to 30.03 million tonnes by 2020.
However, the recycling rate in India is less than 20 percent compared to the the rest of the world - which accounts for an annual revenue of $500 billion - where it is accepted as a sustainable business model yielding higher revenues entailing saving the environment and huge amounts of energy.
The MRAI urged the government to frame and implement a Metal Recycling Policy along with an "industry status" recognition to boost the sector as well as conserve natural resources, and help the government's 'Swachh Bharat Abhiyan' and 'Make in India' initiatives.
