Reduction in import duty on copper scrap to promote recycling in country

NEW DELHI: The Centre on Wednesday said slashing of import duty on copper scrap will promote recycling in the country, as the basic raw materials will now become cheaper. In the Union Budget 2021-22, the government announced reduction of import duty on copper scrap from 5 per cent to 2.5 per cent.

“Reduction of import duty on copper scrap… (will) boost recycling of copper in the country,” the mines ministry said in a statement.

The move will also lead to social, environmental and economic benefits, besides resulting in potential for employment generation, according to the statement.

Recycling of metal improves the resource efficiency as there is no loss of property. It is economically viable, energy efficient and environment friendly, it added.

Metal produced today is scrap for tomorrow and thus again becomes a resource.

By utilising copper scrap, domestic companies can improve competitiveness and profitability.

Recycling-based innovations can also give industries an edge in the export market.

New industries can be created in the recycling sector with focus on innovative design and manufacturing from recycled material. Reduced import dependence for critical minerals will help to improve the country’s trade balance and promote economic stability, it said.

India’s mineral rich areas are under dense forests and inhabited by indigenous communities.

Extraction of minerals affects local communities. Recycling would put fewer burdens on the need of extraction of minerals, thereby offsetting some of the risks arising out of social conflicts, the statement said.

Extraction activities often result in ecological degradation. Reduced extraction pressures due to adoption of recycling will help in containing ecological degradation and pollution associated with mining.

Recycling and adoption of related innovative methods may altogether give rise to the need of setting up of new industries that can contribute significantly to employment generation.

Innovation in recycling process and manufacturing has the potential to create highly skilled jobs, benefitting domestic industries and developing potential for export market.

This may further prompt global companies to locate efficient design and/or manufacturing units here leading to increased skilled/unskilled labour demand, the statement said.

Reduction in import duty on copper scrap to promote recycling in country Reduction in import duty on copper scrap to promote recycling in country Reviewed by TechCO on 2/05/2021 Rating: 5

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