New Delhi, May 18 (KNN) Union Ministry of Steel is all set to set up 20 scrapping centres in various parts of the country to produce steel from the scrap.

“The ministry of steel will introduce a steel scrap policy this year which, in conjunction with the much-awaited vehicle scrappage policy by Ministry of Road Transport and Highways (MoRTH) , will lay out the rules and regulations for using scrap from old vehicles to produce steel," said Aruna Sharma , Secretary , Union Ministry of steel.

She was speaking at a seminar on ‘Opportunities for Indian Steel Mills in Infrastructure sector’ organised jointly by Ministry of steel along with Steel Guru here on Thursdày.

“We have been waiting for the transport department to come out with its policy on the end-of-life of commercial vehicles. The steel scrap policy will be based on this . Once this policy is in place, India will start producing steel from scrap," she said.

For a steel producer, it doesn’t make a difference whether you make steel from iron ore or scrap.

The National Steel Policy’s target of 300 million tonnes (mt) of steel production by 2030-31 includes steel made from both iron ore and scrap, Sharma said.

“The scrap policy will reduce dependence on imports. Local scrap reduces dependence on imports for secondary steel plants in India. These scrap units will be set up either by the private sector or as public-private partnerships because the business proposition for scrap makes it attractive to the private sector," Sharma added.

“With India targeting a 300 million tonnes a year steel production capacity by 2030-31, the focus of steel ministry is on domestic consumption and making the sector globally competitive.