Base prices to be fixed by the Industry Department and the Pollution Control Board; scrap dealers’ monopoly to end
Shimla – The Himachal Pradesh government is gearing up to generate substantial revenue by regulating the sale of industrial scrap across the state. The Industries Department and the Pollution Control Board have been tasked with determining the base prices of various scrap materials such as cardboard, steel, aluminium, plastic, and iron—marking the first formal step toward streamlining a sector previously dominated by informal and unregulated dealings.
Once the base price is finalised, the state government will levy a tax—likely between 10 to 15 percent—on the sale of scrap. Sources suggest that if the base value of scrap is estimated at ₹25 to ₹30 crore, the government could earn several crores annually through taxation alone.
At present, the state earns no revenue from industrial scrap, despite huge daily transactions and growing profits for private scrap dealers. Reports have brought to light that some individuals are operating unchecked in industrial sectors, exploiting the absence of regulatory oversight.
The new policy framework aims to dismantle this monopoly by introducing transparent pricing mechanisms based on the quality and quantity of scrap. Officials are also working on a formula to ensure fair valuation and taxation across various types of scrap materials.
Earlier, the state government had considered introducing a comprehensive scrap policy, but the proposal did not materialise. Now, with clear instructions from the government to set base prices and enforce taxation, the informal scrap trade is expected to be brought under the regulatory net—turning a previously ignored sector into a reliable source of state income.
