India Moves to Finalise Steel Scrap Policy as Industry Presses for Budget Push on Green Steel

Overview

• The Steel Ministry said it is finalising an updated steel scrap recycling policy to replace the 2019 framework, targeting completion within a couple of months to address stakeholder pain points.
• Officials put scrap at about 21% of India’s crude steel production versus a roughly 31–33% global average, with usage near 9% in BF‑BOF, 13% in EAF and 39% in induction furnaces.
• The Indian Steel Association and ASSOCHAM urged budget measures such as extending the GST reverse charge across the scrap supply chain, concessional green finance and incentives for renewable power and waste‑heat recovery.
• Experts proposed mandating a defined share of green steel in infrastructure procurement and removing GST on certified green steel to help bridge the cost gap.
• ICRA warned the transition will be gradual due to cost and technology constraints, though a shift to green power could cut emissions by about 13% for BF‑BOF mills and up to 22% for DRI‑based units.