From UPSC perspective, the following things are important :
Prelims level : Steel scrap
Mains level : Steel production and associated factors
Ministry of Steel has issued the Steel Scrap Recycling Policy.
Steel Scrap Recycling Policy
This will ensure scientific processing & recycling of ferrous scrap generated from various sources and a variety of products.
The policy framework shall provide standard guidelines for collection, dismantling and shredding activities in an organized, safe and environmentally sound manner.
The policy aims to achieve the following objectives –
To promote circular economy in the steel sector.
To promote a formal and scientific collection, dismantling and processing activities for end of life products that are sources of recyclable (ferrous, non- ferrous and other non-metallic) scraps.
It will lead to resource conservation and energy savings and setting up of an environmentally sound management system for handling ferrous scrap.
Processing and recycling of products in an organized, safe and environment friendly manner.
To evolve a responsive ecosystem by involving all stakeholders.
To produce high quality ferrous scrap for quality steel production thus minimizing the dependency on imports.
To decongest the Indian cities from ELVs and reuse of ferrous scrap.
To promote 6Rs principles of Reduce, Reuse, Recycle, Recover, Redesign and Remanufacture through scientific handling, processing and disposal of all types of recyclable scraps including non-ferrous scraps, through authorized centers / facility.
Steel is a material most conducive for circular economy as it can be used, reused and recycled infinitely.
While iron ore remains the primary source of steel making, used or re-used steel in the form of Scrap is the secondary raw material for the steel industry.
Indian steel industry is characterized by the presence of a large number of small steel producers who utilize scrap with other inputs for steel making.
Why focus on scrap steel?
The availability of scrap is a major issue in India and in 2017 the deficit was to the tune of 7 million Tons.
This was imported at the cost of more than Rs. 24,500 crores (approx.) in 2017-18.
The gap between demand and supply is can be reduced in the future and the country may be self-sufficient by 2030.
The scrap has to be channelized so that the same can be utilized for steel production in an environmentally friendly manner.
Commercial significance of scrap
Scrap is an important input for the electric furnaces.
If quality scrap is provided as the charge to the electric furnaces, then the furnaces can produce high grade steel.
High Grade Steel Scrap shall not have the impurities if processing is done with the scrap processing centres and by shredders etc.
The high-grade steel scrap shall be recycled to produce high grade steel again, to be used in the industries such as equipment manufacturing, automobiles and other downstream industries.
Scrap with less or no impurities shall result in better long products that are commonly used in the construction industry and is common use steels.
If better-processed scrap is produced in the country, it shall result in not only import substitution of scrap but also import substitution of high-end steel that is currently imported in the country.
Scrap based steel making technologies have been envisaged as one of the important options to reduce GHG emission intensity.
This shall also contribute in adopting the principle of 6Rs i.e. Reduce, Reuse, Recycle, Recover, Redesign and Remanufacture to avoid any adverse impact on the environment.
There is a worldwide trend to increase steel production using scrap as the main raw material as recycling of scrap helps in conservation of vital natural resources besides other numerous benefits.
Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy & their effects on industrial growth
From UPSC perspective, the following things are important:
Prelims level: Anti-dumping duty
Mains level: Result of Government’s efforts implemented recently.
Record amount of steel production
India has produced 86.7 million tonnes (mt) in the nine months to December from 73.96 mt in the previous year, according to provisional figures from the steel ministry
India, in fact, has been a net exporter of steel for the past 13 months and has surpassed Japan to be the world’s second largest exporter
Result of government’s policy: Last year, the government took steps to protect steel makers, construction activity rebounded and China shut down illegal factories.
Last year’s National Steel Policy
The policy had projected crude steel production capacity will increase to 300 mt per year for 2030-31 from 100-120 mt now came on heels of the government introducing a minimum import duty (MIP) on certain steel products,
and an anti-dumping duty on products from China and European countries
The duty on Chinese products was later extended to five years
Need for consolidation
The top six producers account for half of all steel manufactured in India, the rest of the business remains fragmented, making it ripe for consolidation
A penalty imposed on suspiciously low-priced imports, to increase their price in the importing country and so protect local industry from unfair competition
Anti-dumping duties are assessed generally in an amount equal to the difference between the importing country’s FOB price of the goods and (at the time of their importation) the market value of similar goods in the exporting country or other countries
Mains Paper 3: Science & Technology | Science and Technology- developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology
From UPSC perspective, the following things are important:
Prelims level: Particulars of the Automotive Steel
Mains level: Why important for India?
Production of auto steel
Steel Authority of India Ltd (SAIL) will start producing automotive steel in a $1 billion partnership with ArcelorMittal in three years
SAIL has approved entering into a “non-binding” agreement of terms on the joint venture with the world’s biggest maker of the alloy
SAIL said a definitive agreement with ArcelorMittal would be “finalised in due course subject to financial viability”
Possible benefits of this agreement
It will help in cutting down imports of high-grade steel as the country revs up car manufacturing
Importance of this deal
India is banking on the SAIL partnership with ArcelorMittal to cut imports of high-grade auto steel, which mostly comes from Japan and South Korea
India is a major automobile producer and exporter, and the country is stepping up manufacturing under Prime Minister Narendra Modi’s “Make in India” campaign