Mumbai, February 05, 2015: Indian Metal Recycling Industry, which recycles metals like steel, aluminium, copper, zinc; majorly from automotive, power, infrastructure, construction and white goods industry, is set to register an annual growth of 11.4 per till the year 2020 and considering the growth potential, it needs immediate policy intervention, noted the Report 'Metal Recycling Sector: Contributor to National Wealth' published by Frost & Sullivan at the 'Metal Recycling Conference' organised by Metal Recycling Association of India (MRAI), an apex body of India's ferrous and non-ferrous metals recycling industry. The Conference was organised to discuss Prospects, Issues and Challenges of Indian Metal Recycling Industry. The Report was unveiled in the presence of Shri Vishnu Deo Sai, Minister of State, Steel and Mines, Government of India. Shri Subhash Desai, Minister of Industries, Maharashtra was also present on the occasion.

The Report further noted that the potential of Metal Recycling industry is not fully utilised and hence, there is more burden on primary production resulting in depletion of natural resources. A strong policy regime can not only turn the fortunes of this industry favourably by throwing up immense economic opportunities; but will also help convert waste into wealth for the nation, said the Report.

During the Conference, Metals Recycling Association of India, urged the Government to help the metal recycling industry which has been badly affected by heavy import duty, Special Additional Duty (SAD) regime and certain Free Trade Agreements (FTAs) with countries that is making metal recycling unviable for Indian industry. Association urged the Ministry of Steel and Mines to consider the removal of import duty and SAD that is levied on imported scrap products on immediate basis in the forthcoming Budget. Association pointed that immediate intervention by Government will only save the already bleeding industry from dying. Association also requested the Government of Maharashtra to create special recycling zones in the State.

Responding to the request posed by the Industry, said Shri Vishnu Deo Sai, Minister of State, Steel and Mines, Government of India, "Metal Recycling Industry is certainly important as it converts waste material into wealth and thus protects environment, saves energy, health and natural resources. The Ministry will coordinate with the Finance Ministry and look into the aspects of import duty on scarp, SAD and FTAs with a view to solve the problems being faced by Indian Metal Recycling Industry. The Ministry will also look into the recommendations of the Joint Parliamentary Committee."

Shri Subhash Desai, Minister of Industries, Government of Maharashtra, said, "As Metal Recycling Industry has suggested to the Maharashtra State Government to consider allocation of special Recycling Zones for Metal Recycling Industry, we will review the proposal."

As per the Report, today, India's annual scrap consumption is INR 750 billion (20.40 million tonnes) and it imports 6.48 million tonnes of scrap at an estimated value of INR 390 billion to become the world's third largest importer of scrap. With a CAGR of 11.4%, the sector is poised to take the consumption to 30.03 million tonnes by 2020. Surprisingly, India's recycling rate is less than 20% where the world over, recycling has been accepted as a sustainable business model yielding higher revenues entailing saving the environment and tremendous amount of energy.

MRAI said that with a view to ensure the fast track growth of the industry, Metal Industry Association of India has sought a framing and implementation of Metal Recycling Policy duly supported by an 'industry-status' recognition. As the industry opens up and grows at a CAGR of 11.4 per cent, this will increase the contribution of Metals Recycling to the Indian GDP and ensure sustainable growth coupled with preservation of natural resources.

It further said that when Global Recycling Industry generates annual revenue of $ 500 billion, India is lagging much behind. Government should immediately intervene and draft a Metal Recycling Policy to grant industry status to this sector and rationalise duty structures to make it a globally competitive industry. With this, the Government will be a net revenue earner and it will save the environment and energy. With a better flow of raw material in manufacturing through recycling of metals, the industry can thus help achieve Government its mission of Swatch Bharat Abhiyaan and Make in India.

The sponsors for Metal Recycling Association of India were Oxford Instrument, AI Zarooni & AI Khwaja, Uniqe Speditor, Laxcon, CMR, MTC group and Jain Hydraulics.

The Industry has sought following initiatives by Government on urgent basis:

• Industry Status and Policy to Metal Recycling Sector: Policy to be framed to promote the sector such as recycling zones/clusters, incentives, subsidies
• Exemption of Special Additional Duty (SAD): SAD of 4% has to be exempted for recycling sector as it adds to the tax burden that is passed as CENVAT credit which remains unused
• Amending the CENVAT Act: To allow SAD Refund for companies filing closure and Cenvat Credit to be allowed for adjustment against fresh import, if not utilized within 90 days
• Removal of Basic Import Duty: Basic Customs duty levied on imports of Ferrous & Non Ferrous Scrap to be removed as Indian manufacturers stand to lose market share vis-a-vis other emerging countries due to higher import tariff on metal scrap, and
• Inverted Duty Structure on account of FTAs (Foreign Trade Agreements) needs to be corrected: FTAs with partner countries to be corrected to avoid inverted Duty structure - Raw materials cost higher than imported semi/finished metal products.

MRAI is a National Association representing India's Ferrous and Non-Ferrous metals recycling industry. MRAI has its head office in Mumbai and brings under one Association, all the various regional recycling associations that are currently active as well individual companies as its Members.