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India needs to significantly increase use of steel scrap in production processes: Pandey
Jan-21-2026

Joint Secretary in Ministry of Steel Daya Nidhan Pandey has said that India needs to significantly increase the share of steel scrap in its production processes to support sustainable growth, reduce emissions and meet future capacity targets. The move is seen as pivotal for achieving long-term energy efficiencies, supporting resource security and reducing the overall environmental footprint of the steel sector. He said India, the world's second-largest crude steel producer, has registered 11.7 per cent growth in finished steel consumption over the last four years. 

He said India's scrap ecosystem today is still at an early stage of maturity and will require time to reach the global average. He said that as successive waves of infrastructure, vehicles, and industrial assets reach end-of-life, scrap generation in India will increase steadily. In this context, he said ship breaking, end-of-life vehicles and construction and demolition waste are expected to emerge as major and reliable sources of industrial-grade scrap in the coming years. 

The joint secretary further said that bridging this gap requires a concerted approach across the steel ecosystem, encompassing both government and industry. Stronger supply-side measures are essential, including stricter enforcement of ELV deregistration, mandatory compliance for construction and demolition waste recovery, and the modernization of shipbreaking facilities. In parallel, he said demand-side policies must create assured and cost-competitive markets for scrap, enabling steel producers to adopt scrap at scale and with confidence.


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