INDIAN GOVERNMENT DISCUSSES MEASURES TO BOOST RECYCLING SECTOR AND CIRCULAR ECONOMY
Introduction: The Indian government is actively considering the implementation of policy instruments like Extended Producer Responsibility (EPR) in an effort to promote a circular economy and decrease waste. According to a senior official from the Ministry of Mines, this action aims to encourage recycling and build a more sustainable future. The Ministry of Mines and the Ministry of Steel have already released recycling frameworks as part of the Sustainable Development Goals (SDG) 2030 initiative, emphasising the growth of the recycling sector through cutting-edge technology with a focus on achieving resource efficiency and carbon neutrality.
The role of extended producer responsibility (EPR) in promoting recycling Producers would be responsible for handling or getting rid of post-consumer products under the Extended Producer Responsibility (EPR) policy as it is currently proposed. With this strategy, producers actively reduce their environmental impact and help pay for collection and recycling initiatives. Producers will be required to fulfil these obligations, which will provide the recycling sector with significant growth and development incentives.
Extended Producer Responsibility (EPR) and its Contribution to Recycling Promotion: In accordance with the Extended Producer Responsibility (EPR) policy, producers would be in charge of handling or discarding post-consumer products. With this strategy, producers actively reduce their negative environmental effects and support initiatives for waste collection and recycling. The recycling industry is anticipated to receive significant incentives for growth and development by imposing these obligations on producers.
Revisions to Taxation and Import Duties Appeals: The 18 percent Goods and Services Tax (GST) levied on metal scrap has been called into question by Dhawal Shah, senior vice-president of the Material Recycling Association of India (MRAI). To advance a circular economy and foster a more favourable ecosystem for recycling, Shah suggests lowering it to 5 percent. Shah also emphasised the importance of encouraging policies to draw capital into the recycling industry, particularly with the 2030 goal of producing 300 million tonnes of steel.
Tax and import duty revision requests: Senior Vice-President of the Material Recycling Association of India (MRAI), Dhawal Shah, has called on the government to reconsider the 18% Goods and Services Tax (GST) imposed on metal scrap. In order to advance a circular economy and create an ecosystem that is more favourable to recycling, Shah suggests lowering it to 5 percent. Shah also emphasised the need for advantageous policies to entice investment into the recycling industry, particularly with a goal of producing 300 million tonnes of steel by 2030.
Initiatives and Collaboration from the Government: To aid in the expansion of the recycling industry, the government has tasked the autonomous JNADDDC (Jawaharlal Nehru Aluminium Development & Design Centre), which is a division of the Ministry of Mines, with promoting recycling activities and offering technical assistance. The government, MRAI, and JNADDDC collaborated on the sixth event of the “Azadi ka Amrit Mahotsav (AKAM) – Circular Economy Campaign – 2023,” which just finished up in Kolkata. These programmes seek to strengthen relationships between recycling industry participants and address any problems that may exist.
The Indian government’s efforts to advance a circular economy and strengthen the recycling industry are a reflection of its dedication to environmental stewardship and sustainable development. The government aims to create an environment that is conducive to investment and growth in the recycling industry by taking into account policy tools like Extended Producer Responsibility (EPR) and addressing taxation and import duty concerns. These initiatives are essential steps towards achieving resource efficiency and carbon neutrality while also releasing the enormous potential of India’s recycling market, along with strategic partnerships and awareness campaigns.
