The government will consider the demands of the recycling industry and initiate reforms on a fast-track basis, Union Minister of Coal and Mines G Kishan Reddy said on Monday, as recyclers sought immediate abolition of the mandatory pre-shipment inspection certificate (PSIC) regime for imported metal scrap.
The minister was addressing the Material Recycling Association of India’s (MRAI) national seminar on India’s critical mineral recycling ecosystem and circular economy in New Delhi.
The recycling industry has argued that the PSIC regime has disrupted scrap imports and affected the operations of recyclers and manufacturers.
PSIC is generated by Pre-Shipment Inspection Agencies (PSIAs), which are inspection bodies formally registered and approved by India’s Directorate General of Foreign Trade (DGFT). Their primary role is to visually check and test imported goods, which most commonly include metallic waste and scrap, at the port of loading before they are shipped to India. This ensures the cargo complies with Indian safety standards and does not contain unauthorised hazardous elements, explosives or illegal radioactive materials.
The recycling industry says that physical verification is time-consuming and leads to delays in delivery and even consignments getting stuck at ports.
It has sought its abolition and replacement with an India-based, technology-driven inspection mechanism at designated ports equipped with scanning and inspection infrastructure.
“When India already has the infrastructure to scan and verify consignments at its ports, there is a strong case for undertaking verification within the country rather than depending entirely on an overseas system,” MRAI president said.
MRAI Senior Vice-President said about 2,500 scrap containers were handled daily and overseas inspection and documentation costs were about $200 per container. The association estimated that shifting verification to ports in India could save about $500,000 in foreign exchange outgo every day, apart from reducing delays and logistics costs.
The association proposed allowing scrap imports through designated Indian ports with scanning and inspection facilities, while permitting other ports to join the system after installing the required infrastructure.
“In its place, India should adopt destination-based scanning and radiation monitoring at Indian ports. Existing scanning infrastructure at 13 ports should be utilised immediately, while the required infrastructure should be established at the remaining ports,” he said.
