Aluminium recycling plays a crucial role in strengthening India’s circular economy by conserving natural resources, reducing energy consumption, and minimizing environmental pollution. However, because recycling involves melting, emissions, and handling of industrial scrap, it is closely regulated under India’s environmental and waste management framework. From obtaining Consent to Establish and Consent to Operate from the State Pollution Control Board to securing recycler authorisation and complying with EPR obligations, every stage of an aluminium recycling business must follow a structured legal process.
Registration is required for all businesses engaged in handling aluminium waste.

These include:

1. Aluminium Recyclers
Businesses that melt scrap aluminium and produce it into ingots, sheets, rods, or other usable raw materials.

2. Scrap Processors and Dismantlers
Organisations that sort, crush, shred, or prepare aluminium waste for recycling.

3. Scrap Traders and Dealers
Businesses that store or sell aluminium scrap in bulk.

4. Importers of Aluminium Scrap
Companies that bring scrap into India for recycling or resale.

5. Producers Using Aluminium Packaging
Manufacturers that use aluminium cans, foil, or containers are required to follow EPR guidelines.

Legal Framework for Aluminium Recycling
Aluminium recycling is governed by several laws and rules, including:

- Environment (Protection) Act, 1986

- Solid Waste Management Rules, 2016

- EPR Rules for non-ferrous metals

- Guidelines issued by the State Pollution Control Board (SPCB)

Although aluminium itself is non-hazardous, the process of melting and handling dross can produce harmful emissions and waste, so environmental clearance is necessary.

Aluminium Recycling Registration Process
Step 1 – Business Registration
The recycler must be registered as a proprietorship, partnership, Limited Liability Partnership (LLP), or private limited company with a PAN, GST, and registered office address.

Step 2 – Factory Setup
The unit must have:

- A designated area for storing scrap

- Melting equipment, such as a furnace

- Pollution control systems, like chimneys, filters, and scrubbers

- Fire and safety measures in place

Step 3 – Consent to Establish (CTE)
The business must apply for CTE with the State Pollution Control Board (SPCB) before setting up the machinery.

Step 4 – Install Plant and Pollution Controls
After receiving approval, the unit should install the required equipment and pollution control devices.

Step 5 – Consent to Operate (CTO)
Following installation, the business must apply for CTO.

The SPCB will inspect the site before granting permission.

Step 6 – Recycler Authorization
Once the CTO is approved, the business is officially registered as an authorised aluminium recycler.

Documents Required
- Certificate of incorporation or firm registration
- PAN and GST registration
- Proof of factory or land ownership/lease
- Site layout and plant design
- Manufacturing and recycling process details
- Pollution control system information
- Electricity bill
- Fire safety certificate
- Aadhaar or ID of directors or partners
Government Registration Fees
| Unit Type | Approximate Government Fee |

|----------------------|----------------------------|

| Small recycler | ₹5,000 – ₹15,000 |

| Medium recycler | ₹15,000 – ₹50,000 |

| Large plant | ₹50,000 – ₹1,00,000+ |

Fees may vary by state and based on the plant's capacity.

EPR Compliance for Aluminium Packaging
Under India’s EPR framework for non-ferrous metals, producers using aluminium packaging are responsible for managing the waste they generate.

Who Must Comply

- Beverage can manufacturers

- Aluminium foil and packaging producers

- Importers and brand owners selling products in aluminium packaging

What EPR Requires
- Registration on the CPCB EPR Portal

- Achieving annual recycling targets

- Using a minimum percentage of recycled aluminium

- Submitting regular compliance reports

- Purchasing EPR recycling certificates from approved recyclers when required

Failure to meet EPR targets can result in penalties and restrictions on business operations.

Import and Export Compliance for Aluminium Scrap
Importing Aluminium Scrap
To bring aluminium scrap into India, the importer must:

- Have been issued an Import Export Code (IEC) by DGFT.

- Obtain pollution control approval from the SPCB

- Ensure the scrap is free from radioactive or hazardous contamination

- Complete customs clearance and provide proper documentation

- Obtain a pre-shipment inspection certificate for certain shipments

Exporting Aluminium Scrap
For exporting aluminium scrap, the exporter must:

- Have an IEC Code

- Follow DGFT's Foreign Trade Policy

- Submit customs shipping bills and proper classification

- Provide quality and weight certification

Illegal or contaminated shipments are not allowed and may result in rejection and penalties.

Checklist for Setting Up an Aluminium Recycling Plant
Business & Legal
- Company / LLP / Firm registration

- PAN, GST, and bank account

- IEC (if importing or exporting scrap)

Land & Infrastructure
- Industrial land or factory

- Area for scrap storage

- Melting furnace and machinery

- Pollution control systems

- Fire safety equipment

Approvals
- Consent to Establish (from SPCB)

- Consent to Operate (from SPCB)

- Recycler registration

- EPR registration (if applicable)

Operations
- Waste handling plan

- Emission and residue management

- Worker safety and training

- Record keeping and reporting