India to accelerate scrap metal recycling reforms and review inspection rules

At a seminar on India’s critical mineral recycling ecosystem, Union Minister of Coal and Mines G Kishan Reddy pledged to accelerate reforms for the metal-scrap recycling industry and to weigh the sector’s demands. Recyclers are urging the removal of the mandatory pre-shipment inspection certificate (PSIC) regime, arguing that it hampers imports and raises costs. They suggest replacing it with a technology-based inspection system at Indian ports, leveraging scanning and radiation-monitoring equipment already in place at 13 locations and expanding to others.

MRAI president Sanjay Mehta and senior vice-president Dhawal Shah highlighted that about 2,500 scrap containers are processed daily, with current overseas inspection fees around $200 per container. Shifting verification to Indian ports could save an estimated $500,000 in foreign-exchange outflows each day and reduce logistical delays. The proposal also calls for designating ports equipped with the necessary infrastructure while allowing others to join after upgrades.