New Delhi: he government today announced the proposal to set up scrap-based steel plants in the northern and western part of the country.

“The steel ministry proposes to set up steel plants with scrap as the raw material in various parts of north and west India,” Chaudhary Birender Singh said here.

The minister was addressing the India Segment of 2017 World Recycling Convention, organised by the Bureau of International Recycling (BIR) in partnership with FICCI, the industry body said in a statement.

The government expects that in the coming years, 44 per cent of the total scrap available in India would be generated at different locations in Jammu and Kashmir, Punjab, Haryana and Delhi would be used to produce steel, the statement said.

In addition, 67 per cent of scrap reaches western shores which could be utilised as feedstock to produce steel, the statement added.

Singh said that initiative of the government to recycle waste products for productive purposes would result in saving of 65 per cent of iron ore.

Iron ore is the main raw material for steel production.

The government, he said, is adopting a 360 per cent holistic approach wherein the recycling industry can assist to achieve the production target by providing raw material for the steel sector.

The minister also expressed hopes that legislation would be enacted to ban use of diesel vehicles in India.

“… the pending legislation on the ban on use of 15-year old diesel vehicles in India would be taken up and passed in the winter session of Parliament,” the minister said.

According to the estimates of the steel ministry, after the ban, the scrap market would become attractive as it would fetch 10-15 per cent more price for metal scrap.