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Union Minister Jyotiraditya Scindia on Tuesday pitched for policy guidelines to utilise scrapped vehicles as raw material for steel production, saying there are close to about one crore such vehicles in the country.
Scindia, who also holds steel portfolio, said the time is not far away when the country will have to move towards green steel, and therefore, the option of iron ore and coking coal will not be available.
Green steel is manufactured without using fossil fuels.
Speaking at an event here, the minister said recycling is something that is not only the need of the hour but also imperative.
"Therefore, I would like to urge states to put in place the process and procedures through your respective RTOs (Regional Transport Offices) and this is something we have engaged with MoRTH (Ministry of Road Transport and Highways) to engage with each of your counterparts in your states to put in place the process within each RTO to make it easier for scarp dealers to take those end of life vehicles and deposit them with RTOs," the minister said.
The government, he said, introduced a steel scrap recycling policy in 2019 and stressed that there was a need to put up metal scrapping centres to make sure that especially end-of-life vehicles are processed and recycled.
Stating that the option of scrap today is limited, Scindia said in order to substitute scrap one of the easiest alternatives is to look at sponge iron.
India has set a target to double the crude steel production capacity from 154 million tonnes per annum now to 300 million tonnes per annum in the next 9-10 years to boost indigenous capabilities.
India is rapidly moving towards becoming the world's largest manufacturing hub and the government is actively engaged in creating the necessary policy environment for the development of the steel sector.