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The Centre is working on a steel scrap policy to help reduce dependence on imports and aid steel production, Binoy Kumar, Secretary, Union Ministry of Steel, said on Wednesday.

The steel industry imported 5.7 million tonnes of scrap in 2016-17.

While Kumar did not specify the timeline for implementation of the policy, he said discussions will soon begin with different state governments.

“We also need quality scrap to go into the furnaces and work is being done to get in place a (steel) scrap and re-cycle policy,” Kumar said.

He was addressing reporters on the sidelines of the inauguration of the 56th National Metallurgists’ Day and 72nd Annual Technical Meeting of The Indian Institute of Metals here.

Incidentally, a draft commercial vehicle scrapping policy, is also expected.

Earlier this year, Mahindra MSTC Recycling, a joint venture between state-run metal scrap trading firm MSTC and Mahindra Intertrade Ltd, started pilot runs for dismantling and selling scrap from old commercial vehicles in Greater Noida.

According to Kumar, the per capita steel consumption in India remains extremely low when compared to the global average. As per the Joint Plant Committee (JPC) report, India’s per capita consumption of steel stands at 69 kg, against the global average of 214 kg.

“The per capita consumption is extremely low and has been a historical issue. The aim is to take the figure to somewhere around 160 kg by 2030 and the government is taking initiatives towards this,” he said.

Initiatives taken by the Centre include life-cycle costing of steel to make its usage more cost-friendly and competitive apart from a policy of preference for domestically manufactured iron and steel products. These initiatives have led to savings (in steel imports) to the tune of ₹8,000 crore, Kumar said.

The National Steel Policy, it may be recalled, has sent a target of 300 million tonnes of steel output by 2030-31.

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