Big changes ahead for Indian carmakers on recycling steel

Car makers in India will soon be required to recycle a portion of the steel used in their vehicles, according to new government regulations. Starting in April, manufacturers must recycle at least 8% of the steel used in cars sold in 2005-06, ToI reported. This requirement, part of the Extended Producer Responsibility (EPR) norm, will gradually increase to 18% by 2035-36.

The new rules link steel recycling to vehicles reaching their end-of-life, estimated at 20-21 years. The Environment Protection (End-of-Life Vehicles) Rules, notified last week by the environment ministry, mandate safe collection and recycling of these vehicles. Manufacturers must meet yearly targets and prove compliance by buying EPR certificates from authorized scrapping facilities.

Car companies must also educate consumers, establish buy-back programs, and register their activities on a central portal managed by the Central Pollution Control Board (CPCB). The rules state, \"Every producer shall take measures for sustainable production of vehicles, including in accordance with guidelines issued by the central board.\"


Officials say these provisions aim to promote formal vehicle scrapping at Registered Vehicle Scrapping Facilities (RVSFs). Currently, India has 82 RVSFs, with a government goal of reaching 100 within the next three months. Most states are expected to announce policies for setting up RVSFs within two months.

The CPCB will issue EPR certificates through an online portal to RVSFs based on the weight of recovered steel from scrapped vehicles. Car companies can then buy these certificates to meet their recycling obligations. The regulations also apply to vehicle owners, bulk consumers (owning over 100 vehicles), RVSFs, collection centers, and automated testing centers to ensure proper disposal of old vehicles.

(with ToI inputs)