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Metal Recycling Plant Setup

Introduction

India has an annual production of millions of tonnes of metal waste, both industrially, commercially and domestically. Metal waste, be it in the form of iron, aluminum, copper, brass or steel, should not be left to disintegrate into the environment without proper effort to recycle, resulting in the degradation of the environment and losses to the resources. Metal Recycling Plant can transform metal scrap into raw material that can be reused and this is not only environmentally favourable but also commercially beneficial.

Since the infrastructure and manufacturing sector in India is booming the recycled metals have received a great demand. The establishment of metal recycling plant can be a very profitable business venture At CERTILIZE, we do provide the entire consulting service of licensing, establishment, and compliance of a full-fledged metal unit in India.

Licenses and Certifications Required

Setting up a metal recycling factory involves several legal issues of approvals by the government agencies:

  • Company Registration: Be registered as Proprietorship, Partnership, LLP or Pvt. Ltd. Board: Ministry of Corporate Affairs / Udyam portal (MSME)
  • Consent to Establish (CTE) and Consent to Operate (CTO): The Water (Prevention & Control of pollution) Act and the Air (Prevention and Control of pollution) Act. Authority: State Pollution Control Board (SPCB)
  • Hazardous Waste Permission: Obligatory in case the plant processes second hand batteries, e-wastes metals, and polluted metals. Power: SPCB under HWM Rules, 2016
  • Factory License: This is a requirement when using 10 workers or more using power. Labour Department: Authority
  • Fire NOC: This is compulsorily required in fire safety compliance. Authority: Local Fire Department
  • Approval of Electricity Load: There was a need to be industrially connected. State Power Distribution Company
  • Trade License: Necessary of local municipality body to operate within the legality standpoint of operation
  • GST Registration: Mandatory to businesses to businesses and invoicing
  • Registrations (EPR, in case of E-waste or batteries): Recyclers must have a number of requirements as per E-Waste or Battery Waste Management Rules. Authority: CPCB
  • Scrap Import License (as may be applicable): In the case of imported scrap under the HWM Rules and DGFT policy

Standard Machinery and Cost (Indicative)

According to the type of metal that is to be recycled, the type of machinery used will vary. A typical list of a ferrous, and non-ferrous metal recycling plant is as follows:

Machinery Purpose Approx. Cost (INR)
Metal Shredder Machine Shredding scrap metal ₹8,00,000
Magnetic Separator Removing ferrous content ₹1,50,000
Eddy Current Separator Separation of non-ferrous materials ₹3,00,000
Granulator or Crusher Reducing metal size ₹2,00,000
Trommel Screen Segregating materials by size ₹1,50,000
Furnace (if melting involved) Melting metal for ingot formation ₹12,00,000
Ingot Moulds and Caster Making solid recycled metal blocks ₹2,50,000
Fume Extraction System Air pollution control ₹3,00,000
Weighing Machine Inventory and loading ₹60,000

Cost of setting up plant: 30-45 lakhs to set up a medium-scale plant (500-1000kg/hour)

Extra: ETP installation (when water is used), Water pollution control systems, Ventilation and safety installations

Recycling of Metals

  • Collection & Sorting: Scrap metal is gathered on a manufacturing unit, garages, industries and dismantling agencies. It is manually or magnetically of a kind which it is sorted into type (ferrous, non-ferrous).
  • Shredding: The shredder machines are heavy duty and the metal is shredded into small pieces. This enhances surface area as well as enhances melting activities.
  • Separation: The application of the magnetic separators is to separate non-ferrous metals and ferrous metals. Aluminum and copper separation can be done using Eddy current separators.
  • Cleaning & Drying: Metal parts are decontaminated of oil, paints, rust, and so on.
  • Melting (optional): In others, metals are smelted in fires and poured into ingots to get sold back to manufacturers.
  • Packing & Dispatch: Made metal is pressed, weighted, and shipped using an industrial customer, foundry house, or even an exporter.

Market Overview

  • The Indian re-import more than 6 million tonnes of metal scrap in a year
  • The industry has major consumers such as automobile, construction, electrical, and manufacturing industries
  • Some of the products which have soared in demand include recycled aluminum, copper and steel due to increased costs of raw materials
  • The circular economy and infrastructure development emphasis by the government increases the demand
  • The international market is experiencing the growth of the demand in recycling metals because of ESG and carbon neutrality objectives

EPR Benefits (Extended Producer Responsibility)

When you are recycling plant dealing with:

  • Metal recovery (E-Waste components)
  • Exploited batteries (removal of the lead or the lithium)

Then your company should be registered under CPCB requirements of EPR. Benefits include:

  • EPR Credit Generation and the monetization based on producer buy-backs
  • Involvement in partnership associations of producer responsibility
  • Government preference in tenders that involve recycling services
  • Better ESG and sustainability rating on your business

CERTILIZE makes it easy to enroll in EPR, undertake monthly/quarterly returns, and brings you in touch with the obliged.

Why Choose CERTILIZE?

  • Advisory in all capacities of regulatory approvals (SPCB, CPCB, Labour Dept., Fire Dept.).
  • Incorporation of businesses and registration of MSMEs
  • Means of financial feasibility and Detailed Project Report (DPR)
  • Planning and designing of layout and pollution control system
  • Vendor support and selection of machinery
  • Submission to the EPR, management of credentials, and filing of compliance
  • Setting functional audits after installation Live support and advice

Our service covers scrap to setup to ensure that the right waste processing and recycling plant has been established over 100+ locations in India.

Let Us Build Your Metal Recycling Plant

We make your recycling idea into a sustainable, compliant, and profit-making business at CERTILIZE. We make the process of setting up plants trouble-free with our services and experience in the field.

Frequently Asked Questions

  • Which are the kinds of metals that can be recycled using such a plant?

    Ferrous and non-ferrous metals such as iron and steel and aluminium, copper, brass and zinc can be recycled.

  • How much land is necessary?

    Machinery, storage and movement space should be no less than 8,000-10,000 sq. ft.

  • Does all the metal recycling involve melting?

    No. Raw scrap may be sold, shredded and/or classified. The melting is optional by business model.

  • Is it mandatory that a product be BIS-certified?

    When making ingots or rods of some regulated applications only. It is not necessary with regards to scrap processing.

  • Is it possible to import scrap metal?

    Yes, provided there is a valid DGFT license, and HWM (rule) as well as the BIS (where applicable) compliance.

  • Why should I have an ETP in this plant?

    In the case of cleaning or cooling using water there must be Effluent Treatment Plant (ETP).

  • What is the time it takes to receive pollution approvals?

    Also, usually 45 days to 60 days with right papers through the State Pollution Control Board.

  • What is the way to earn EPR income?

    Recovery in the form of verified credits generated by registering with CPCB and sold in the form of metal recovery to their producers.

  • What’s the life of the machinery?

    The good quality machinery serves 810 years with maintenance.

  • Does CERTILIZE provide after-installation services?

    Yes. We also offer yearly compliance assistance, filings of returns, audit advice, and pollution board renewals.

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