Govt explores extended producer responsibility to drive recycling and circular-economy

To promote a circular economy and reduce waste, the government is discussing the use of policy instruments like Extended Producer Responsibility (EPR) to incentivise recycling, a senior mines ministry official said.

Under the Sustainable Development Goals (SDG) 2030 initiative, the Ministry of Mines and the Ministry of Steel have issued recycling frameworks aimed at developing the recycling sector using advanced technology to achieve resource efficiency and carbon neutrality.

"The government has issued recycling frameworks intended to develop the recycling sector using advanced technology to achieve resource efficiency and carbon neutrality. Further policy instruments like EPR are under discussion stage, which will incentivise recycling in the country," Joint Secretary, Ministry of Mines Upendra C Joshi told PTI.

EPR is a policy approach where producers are made responsible for the treatment or disposal of post-consumer products. Under EPR, producers have a role in minimising environmental impact, funding collection, and recycling costs, which will incentivise the recycling industry.

Dhawal Shah, Senior Vice-President of the Material Recycling Association of India (MRAI), has urged the government to review the 18% GST on metal scrap and reduce it to 5% to promote a circular economy and ecosystem.

Shah further highlighted that to achieve a target of 300 million tons of steel production by 2030, the government must implement lucrative policies to promote investment in the recycling sector.

Scrap or recycled steel makes up 22% of India's steel production.

Adding further, Shah stated that the government must also remove import duty on non-ferrous scrap in line with the ferrous scrap. The current import duty on non-ferrous scrap is between 2.5-5%, he said.

The Indian recycling industry, estimated at USD 15 billion now, has substantial potential for growth, Shah said.

According to investment banking firm Avendus Capital, just the recycling of plastics, electronic waste, and batteries can potentially create a market size worth $20 billion by 2030.

As part of the "Azadi ka Amrit Mahotsav (AKAM) - Circular Economy Campaign 2023," the government, in association withAI and JNADDDC, recently concluded its sixth event in Kolkata.

Apart from Joshi, Deputy Secretary of Ministry of Steel, Subhash Kumar, was also present in the city to visit some manufacturing units to gather first-hand inputs.

To support the growth of the recycling sector, JNADDDC, an autonomous body under the Ministry of Mines, has been entrusted with the task of providing technical support and promotion. The awareness campaign under AKAM has also been initiated to connect recycling stakeholders and resolve any issues within the recycling industry.