Battery Scrap Management & India’s Efforts Towards Meeting Lead Demand-Supply Gap by Dr V...

Battery Scrap Management &India’s Efforts Towards Meeting

Lead Demand-Supply Gap

by

Dr V Rajagopalan

Joint Secretary,

Ministry of Environment & Forests

Government of India

Global Lead Mine Production

99%

1%

IndiaRest of the World

Production of Lead in India

Year HZL ILL SecondaryProduction(Est.) (Org.

Sector)

Total ActualDemand

Gap

8th Plan1992-931993-941994-951995-961996-97

38,38225,29934,47627,84327,874

13,73412,37115,06117,81214,936

12,00012,00014,00016,00020,000

64,11649,67063,53761,65562,810

9th Plan1997-981998-991999-20002000-2001

39,01035,76635,12034,840

12,61611,152

9,5105,673

13,00015,00018,00018,500

64,62661,91862,63059,013

94,40097,500

1,14,6001,22,600

29,77435,58251,97063,587

Decline in Lead Production

64116

59013

56000

57000

58000

59000

60000

61000

62000

63000

64000

65000

1992-93 2000-01

Production

Role of Secondary Production in Rest of the World

60%

40%

SecondaryPrimary

Role of Secondary Production in India

33%

67%

SecondaryPrimary

Estimated and Actual Demand of Lead - 1997-98 to 2000-01 (9th Plan)

Year Estimate Actual

8th Plan1992-931993-941994-951995-961996-97

55,00073,00075,30080,10084,000

9th Plan1997-981998-991999-20002000-2001

91,70098,100

1,05,0001,12,200

94,40097,500

1,14,6001,22,600

Growth of Actual Demand for Lead

55,000 MT

1,22,600 MT

0

20000

40000

60000

80000

100000

120000

140000

1992-93 2000-01

Demand

Rate of Growth of Lead Consumption during 1997-2000

10.5 %

2.5 %

0

2

4

6

8

10

12

India World

Consumption

Year Demand(Tonnes)with 6%growth

SupplyHZL

(Tonnes)HZL

SEC. Lead Total GAP +Suplus –Deficit(Tonnes)

10th Plan2002-032003-042004-052005-062006-07

137700146000154700164000173800

3870070200702007020070200

2160021600216002160021600

4500045000500005000050000

105300136800141800141800141800

-32400-9200-12900-22200-32000

11th Plan2007-082008-092009-102010-112011-12

184300196100208600222000236200

7020070200702007020070200

2160021600216002160021600

6000060000600006000060000

151800151800151800151800151800

-32500-44300-56800-70200-84400

12th Plan2016-17(TerminalYear)

316000 70200 21600 70000 151800 -164200

Projected Damand - Supply Gap

Lead Demand for Automobile Batteries

OE ‘000 nos.batteries

Repl. ‘000nos.

Total ‘000nos.

Avg. Leadkgs / unit

Total LeadCons (MT)

Cars 670 1,290 1,960 6 11,760

Jeeps 140 480 620 12 7,440

LCVs 100 720 820 12 9,840

HCVs 160 1,980 2,140 22 49,220

Tractors 270 1,650 1,920 16 30,720

1,340 6,120 7,460 1,08,980

Exports 6000

Estimating Total Lead DemandTotal lead in demand of Auto batteries (including exports & MC) 1,15,000 MT

Total lead in demand of Industrial batteries(assuming 40% used in Industrial)

76,500 MT1,91,500 MT

6% of Auto demand of batteries catered by imports (7000) MT

10% of Industrial demand (mainly in VRLA by Industrial Imports) (7,650) MT

Total consumption of lead in domestic production 1,76,750 MT

30% repair / reuse of negatives etc. in case of auto demand (30% of1,15,000 and 50% thereof)

(17,250) MT

20% of reuse in case of Industrial (20% of 76,500 and 50% thereof) (7,650) MT

Nett consumption of lead in battery manufacture 1,51,950 MT

Add: Lead used in other applications 40,000 MT

Total Lead DemandSay

1,91,950 MT1,90,000 MT

Salient features of Batteries legislation

• Consumers to return used batteries and manufacturers / assemblers / reconditioners / importers responsible for collection of batteries and transport to registered recyclers.

• Auction of used batteries only in favour of registered recyclers

• Dealers are also responsible for collection.• Level playing field • Collection of batteries 50% in the first year, 75% in the

second year and 90% from the third year onwards.• Batteries have been categorised.

Registration Scheme

• Covers used acid batteries, zinc waste, waste oil• Started in 1999; 35 units registered for LAB• Facility inspection mandatory• Compliance with regulatory standards• Secured landfill with leachate collection system• ESM code of practice laid down

• Indian approach broadly on the lives proposed by GETF – individual facility based– waste specific – mandatory compliance with national standards– ESM compliance built into national legislation through mandatory registration of recyclers– List of registered recyclers displayed on web site - transparency

ESM code of Practice on Air Pollution Control

If he gave tocompany

If he gave totrader

Dealer buys back scrapFrom customer at

106 106

Price he gets from company 135 160-190Margin on scrap 29 54-84Income Tax @ 30% (say) 9 -Net margin 20 54-84

What Attracts Dealer to the Trader

OrganisedSector(6 nos.)

Small Scale(50 nos.)

Re-builder /Re-cond.(thousands)

Consumer pays 100 80 60

Sales Tax (11) (9) -

Distribution costs(dealer margins etc.)

(20) (10) -

Excise duty (16%) (10) (5)(concessional)

-

Realisation ofManufacturer

59 56 60

Cost Advantages of Re-Conditioner

Flow of Battery Scrap - Prior to Batteries Legislation

YEAR II

13

Trade Non-Trade 2.5 10

26 13 46 46

Dealer 5 Dealers 23 23

26 26 46

Consumer Bulk Consumer Consumers

13 2.5 Auctions Consumer

2.5

36

23

Stage I

Organised smelting : Supply increase to 25.5%(50% collection) : Traders / unorganised 74.5%

ORGANISEDSMELTER 25.5

Organisedsectormanufacturers

Small scale &Imports

Re-builder

UnorganisedSmelters Red: Scrap

Black: New battery flow

Trader 74.5

Battery Scrap Flow with 50% Collection

YEAR III

20

Trade Non-Trade 4 20

26 20 46 46


26 26 46

Consumer Bulk Consumer Consumers 5

6 Auctions Consumer

1

26

23

Stage IIOrganised smelting : Supply increase to 44%(75% collection) : Traders 56%

ORGANISEDSMELTER 44



Re-builder



Trader 56


YEAR IV

23

Trade Non-Trade 4 23

26 23 46 46


26 26 46

Consumer Bulk Consumer Consumers 5

3 4

Auctions Consumer 1

23

23

Stage IIIOrganised smelting : Supply increase to 44%(90% collection) : Traders / unorganised 50%

ORGANISEDSMELTER 50



Re-builder



Trader 50


Impact of Batteries legislation on demand-supply • Role of traders would diminish / vanish

– Increase in supply - year 1

– increase in supply - year 2

– increase in supply - year 3

• Secondary smelting viable - addl. Capacities planned– HZL to add 35,000 MT by 2003-2004

– BIL to add 25,000 MT by 2002-2003

– Italian technical know-how

• Availability of battery scrap - critical for future additions

• Enforcement holds the key

Impact on Demand Supply (contd.)

• Demand and supply - informal sector ignored• Bridging demand - supply gap

– Expand primary production-ore reserves limited– Expand secondary production

• HZL to add 35,000 MT by 2003-2004• BIL to add 25,000 MT by 2002-2003• Italian technical know-how

– GETF approach to implement ESM in Basel Convention requires serious consideration

• Using the ISO system recognised in WTO• facility specific, waste specific• mandatory compliance with national standards• transparency

Thanks

Battery Scrap Management & India’s Efforts Towards Meeting Lead Demand-Supply Gap by Dr V...

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