Automakers Mandated to Recycle 8% Steel Used in 2005-06 Cars

Automakers in India will soon be required to recycle steel used in their vehicles, according to new government regulations set to take effect in April. The new rules mandate that manufacturers recycle at least 8% of the steel in cars sold in the 2005-06 period, with the requirement gradually increasing to 18% by 2035-36. This initiative is part of the Extended Producer Responsibility (EPR) norm, which ties steel recycling to the end-of-life stage of vehicles, typically estimated at 20-21 years.

The Environment Protection (End-of-Life Vehicles) Rules, announced last week by the Ministry of Environment, mandate the safe collection and recycling of vehicles once they reach the end of their lifespan. Manufacturers will need to meet yearly recycling targets, and they must demonstrate compliance by purchasing EPR certificates from authorized scrapping facilities.

In addition to meeting recycling targets, car manufacturers will be required to educate consumers, establish buy-back programs, and register their activities on a central portal managed by the Central Pollution Control Board (CPCB). These measures are designed to encourage formal vehicle scrapping at Registered Vehicle Scrapping Facilities (RVSFs), of which India currently has 82, with a goal of reaching 100 by the next few months. Most states are expected to announce policies for setting up RVSFs in the next two months.

The CPCB will issue EPR certificates to RVSFs based on the amount of steel recovered from scrapped vehicles. Manufacturers can purchase these certificates to fulfill their recycling obligations. The regulations also apply to vehicle owners, bulk consumers (who own over 100 vehicles), RVSFs, collection centers, and automated testing centers, ensuring proper disposal of old vehicles.