Question : Scrappage Industry

(a) whether various Ministries have been working on Scrappage Policy to promote circular economy in India and if so, the details thereof;

(b) whether it is true that one of the challenges being faced by the scrapping industry is that despite being a new industry, the manufacturing status of the industry has not been considered and if so, the details thereof;

(c) whether it is also true that because of lack of manufacturing status to the recycling/scrappage centres, they are losing investment benefits being considered by different States as part of their industrial policy to encourage investments in their States;

(d) if so, whether even though seperate NIC code has been issued by DPIIT, it is not helping this new industry to qualify as manufacturing based industry and if so, the details thereof; and

(e) whether the DPIIT will consider giving manufacturing status to the recycling/scrappage industry and if so, the steps being taken by the Government in this regard?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI SOM PARKASH)

(a) to (e): The Ministry of Steel has formulated the Steel Scrap Recycling Policy which was notified in Gazette of India on 07th November, 2019. The policy provides a framework to facilitate and promote establishment of metal scrapping centres in India for scientific processing & recycling for ferrous scrap generated from various sources in an organized and environment friendly manner for production/generation and increased availability of shredded steel scrap in the country. Further, on the Scrappage Policy, the Ministry of Road Transport & Highways has indicated that Niti Aayog has been requested to prepare circular economy vision document for all ministries in which all the priorities, laws and policies should be depicted. The Department for Promotion of Industry and Internal Trade (DPIIT) does not have any process of providing ‘manufacturing status’ to an industry.

National Industrial Classification (NIC) Code is provided by Ministry of Statistics and Programme Implementation (MoS&PI). NIC Code 46699 is provided for Wholesale of metal and non-metal waste and scrap not elsewhere classified (n.e.c.) and NIC code 3830 is provided for recovery of materials such as paper, plastics, used beverage cans and metals, into distinct categories, from garbage.

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