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Steel firms anticipate recycling mandate for automakers

The draft regulations specified 10% but the mandate is likely to be kept at 8 %.

Published

1 year ago

September 17, 2024

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It is anticipated that the government will require automakers to recycle a certain percentage of steel from old vehicles. This measure is expected to enhance the steel circular economy and increase the availability of scrap steel. Based on the draft regulations concerning Extended Producer Responsibility (EPR) for end-of-life vehicles released on January 30, it is predicted that the Environment Ministry will introduce regulations mandating automakers to recycle or recover at least 8% of the steel used in vehicles from the fiscal year 2026, which was originally set at 10% in the draft. The requirement is expected to gradually rise to 18% by 2035-36, although the final mandate may be capped at 18% instead of the 30% proposed.

According to CRISIL, if automakers enhance their recycling efforts, an additional 0.2-0.25 million tonnes of steel scrap could become available. While this increase is modest compared to the total steel scrap consumption, it would still benefit the steel ecosystem and support the steel circular economy. Steel companies see the improved availability of scrap as beneficial as the sector works to reduce its carbon footprint. India, which imported 11.2 million tonnes of steel scrap in fiscal year 2024, lacks sufficient domestic scrap supply.

Tata Steel’s CEO and Managing Director, T. V. Narendran, noted that the mandate would help formalise the steel scrap market and positively impact efforts to lower carbon emissions, supporting sustainability. In steelmaking, scrap is used in electric arc and induction furnaces, while increasing scrap rates in carbon-intensive blast furnace processes could reduce emissions. As steel companies aim to decarbonise, scrap-based technologies are expected to play a key role.

AM/NS India’s Ranjan Dhar mentioned that even a slight improvement in scrap availability would be welcomed, especially given the anticipated global restrictions on seaborne trade as the industry shifts towards low-carbon steel production. Jayant Acharya of JSW Steel added that due to various countries’ protectionist measures, domestic scrap supply chains must be established swiftly to support India’s decarbonisation goals.

Dhar also highlighted that in India, vehicles have a longer life cycle compared to other countries, which means that to facilitate recycling, compelling incentives must be introduced to encourage the return of end-of-life vehicles. Additionally, steel companies are rapidly expanding capacity, with CRISIL MI&A estimating that large players will add around 50 million tonnes per annum by 2028, predominantly through blast furnace-based methods.

Related Topics:Crisil electric arc furnaces (EAF)Extended Producer Responsibility (EPR)

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India, Sweden Discuss Green Steel Collaboration

Talks held to explore R&D and technology partnerships in green steel.

Published

16 hours ago

November 3, 2025

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Union Minister of State for Steel, Bhupathiraju Srinivas Varma, held a productive meeting with Ms Sara Modig, State Secretary to the Minister for Energy, Business and Industry, Sweden, at the Ministry of Steel in New Delhi. Ms Modig was accompanied by His Excellency Mr Jan Thesleff, Ambassador of Sweden to India, and other senior Swedish officials.

During the discussions, Minister Srinivas Varma highlighted the rapid growth of India’s steel sector, driven by the visionary leadership of Prime Minister Shri Narendra Modi. India aims to achieve 300 million tonnes of crude steel production capacity by 2030, in line with its commitment to infrastructure-led growth and industrial expansion.

He noted that domestic steel demand in India is rising by around 11 to 13 per cent annually, fuelled by major national infrastructure initiatives, even as global demand shows signs of slowing down.

The two sides discussed potential avenues for collaboration in Research and Development (R&D), particularly in Green Steel Production and other advanced technologies designed to reduce carbon emissions and promote sustainable manufacturing.

Minister Varma also reaffirmed India’s invitation to Sweden to participate in Bharat Steel 2026, an international conference-cum-exhibition dedicated to the steel industry. The event is scheduled to take place on 16–17 April 2026 at Bharat Mandapam, New Delhi, and will serve as a global platform for dialogue, partnerships, and technology exchange in sustainable steelmaking.

The meeting underscored India’s commitment to fostering global cooperation in decarbonising steel production, aligning with both countries’ shared goals of sustainability, innovation, and industrial growth.

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L&T wins Hindalco, Tata Steel projects in Odisha, Jamshedpur

L&T bags major aluminium and steel sector orders

Published

7 days ago

October 28, 2025

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Infrastructure major Larsen & Toubro (L&T) announced on Friday that it has secured significant orders from Hindalco Industries and Tata Steel, strengthening its presence in the metals and minerals sector.

The company’s minerals and metals business vertical won an order from Hindalco to set up a 180 KTPA aluminium smelter and gas treatment centre for a greenfield project in Odisha, as well as a separate order from Tata Steel to construct a coke oven battery at Jamshedpur.

These are among several recent orders bagged by the vertical in India, L&T said in a filing to the Bombay Stock Exchange (BSE).

The scope of the projects includes engineering, manufacturing, supply, construction, and plant installation.

T Kumaresan, Senior Vice President and Head of Minerals & Metals at L&T, said,

“These order wins across the aluminium and steel sectors are a testament to L&T’s engineering excellence, execution capability, and long-standing customer relationships. They further strengthen our role in shaping the nation’s industrial infrastructure, while deepening our engagement with the steel sector through world-class execution and technological excellence.”

The contracts underscore L&T’s strategic focus on expanding its footprint in India’s metals and industrial infrastructure segment, which continues to see strong growth driven by rising domestic demand and capacity expansion across core sectors.

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Shyam Metalics Unveils Rs 100 billion Capex Plan Under Vision 2031

Company targets Rs 400 billion topline by 2031 with 2.5x revenue growth

Published

2 weeks ago

October 23, 2025

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Shyam Metalics and Energy Limited (SMEL) has announced its Vision 2031, outlining a Rs 100 billion capital expenditure plan to expand capacity and achieve a topline of Rs 400 billion by 2031—a 2.5x revenue growth from current levels.

The company plans to enhance its integrated operations by focusing on high value-added and downstream products, including specialty steel, stainless steel, flat products, and aluminium. It also aims to strengthen its presence across key sectors such as defence, railways, engineering, and infrastructure.

SMEL will leverage brownfield expansions in West Bengal, Odisha, and Madhya Pradesh to optimise capital efficiency and minimise execution risk. The Vision 2031 roadmap underscores the company’s commitment to sustainable, value-driven, and capital-efficient growth across the metals sector.