An Analysis of Scrap Tenders in India
Scrap materials refers to discarded or leftover materials that are no longer needed for their original purpose. These materials may be the byproducts of manufacturing processes, construction activities, or other operations. Scrap materials often include items or substances that can be recycled or repurposed to reduce waste and promote sustainability. Examples of scrap materials include metal scraps, plastic remnants, vehicle scrap and unused or leftover materials from various production processes.
Governments and Public Sector Undertakings (PSUs) issue tenders or auctions to sell various types of scraps. The sale of scrap fetches revenue for the government and at the same time converts waste into an economic asset. Moreover, this approach aligns with environmental sustainability goals, encouraging responsible disposal practices, minimizing landfill contributions, and endorsing the principles of a circular economy.
This analysis provides a detailed examination of the scrap materials sold by the Government of India during the year 2022-2023. As per information gathered by Tendersniper from diverse public sources, Indian government entities have released 8492 scrap tenders within the last 12 months, spanning from November 2022 to November 2023. Delhi leads with 789 tenders, constituting approximately 9% of the total and the government agencies in Uttar Pradesh published 574 tenders. Many different types of scraps are sold by the government, grouped under tyre, metal, electrical, machinery, electronic, paper, wire, vehicle, glass and plastic. This report analyzes in detail two key types of scrap tenders: metal and plastic.
Metal scrap
Metal scrap is often collected, processed, and recycled to recover valuable metals like steel, aluminum, copper, and others. Recycling metal scrap is an environmentally sustainable practice that reduces the need for new raw materials and lessens the ecological impact of metal production.
In the past 12 months (from November 2022 to November 2023), Indian government agencies published 707 tenders for metal scrap. Tamil Nadu has contributed significantly with 174 tenders, constituting around 8% of the overall count. Maharashtra, on the other hand, has published 69 tenders. These procurement opportunities span various sectors, encompassing police and defence, industry, and power. A detailed breakdown of metal scrap is provided below.
In India, numerous government entities in the police and defense sectors actively sell metal scrap such as the condemned telecom towers and radio. The Madhya Pradesh Police Department released 95 tenders for items like iron scrap, condemned telecom tower components, and brass scrap, while the Department of Defence Production issued tenders for ferrous melting scrap and various types of steel scrap, including carbon steel and mild steel.
Apart from the police and defense sectors, the industrial sector actively engaged in significant procurement of metal scrap materials. For instance, Balmer Lawrie and Co. Ltd. advertised 60 tenders for the sale and disposal of various scrap materials, including steel scrap, rejected steel sheets, and MS barrels. The Steel Authority of India issued tenders for shredded MS scrap, sale of defective/cutting steel scrap, and stainless steel scrap. Travancore Titanium Products Ltd released tenders for the disposal of unusable damaged MS paint bins, while Tamilnadu Newsprint and Papers Limited published tenders for sale of aluminum scrap. Additionally, Steel Industrials Kerala Ltd invited tenders for the purchase of CI scrap for castings, and The Metals Industries Ltd advertised tenders for the sale of melting iron scrap.
Beside the above, there is a diverse range of metal scrap sold as outlined below: TNEB Limited issued tenders for the sale of copper scrap and both ferrous and non-ferrous scraps. The Madhya Pradesh Power Generating Company Limited published tenders for M.S. cast iron scrap material, while Autocast Ltd advertised tenders for the supply of CRCA scrap. RCDF-MD issued tenders for scrap ghee tin at the dairy, and RAYAGADA released auction sale notices for old and unused tube well iron scrap. The Department of Employment and Training tenders for copper with transformer scrap, the Department of Water Resources advertised tenders for the disposal of RS joists, MS plate, salima plate, steel plate, and fish plate. Additionally, the Department of Cooperation invited tenders for the sale of old burnt nails.
As of December 27th, 2023, there are presently 26 active metal scrap tenders. Maharashtra is in the forefront with 7 tenders, making up 27%, followed by Karnataka and Tamil Nadu with 5 tenders at 19%, Uttarakhand with 4 tenders at 15%, and Kerala and Uttar Pradesh each having 2 tenders, constituting 8%. Madhya Pradesh contributes 1 tender, representing 4% of the total. This distribution of ongoing tenders underscores a prevalent demand for metal scrap across diverse regions in India.
Plastic scrap
Plastic scrap denotes plastic materials that have been discarded or are no longer required for their initial intended use. This category includes various types of plastic waste, such as packaging materials, containers, and other plastic items. Plastic scrap can be collected, processed, and recycled to produce new plastic products.
According to data compiled by Tendersniper from various public sources. Indian government agencies have collectively issued 619 plastic scrap tenders in the past 12 months (from November 2022 to November 2023). Tamil Nadu advertised the most with 187 tenders, representing approximately 30% of the overall count, while Chhattisgarh published 67 tenders, followed by Delhi at 39 tenders. These procurement opportunities extend across diverse sectors, including army and defense, education, industry, and banking. A detailed breakdown of plastic scrap by sector is provided below.
Government agencies like the Chhattisgarh State Co-operative Marketing Federation Limited and Patna Dairy Project are actively involved in selling HDPE bags. The Tamil Nadu Civil Supplies Corporation has released 57 tenders for the sale of various categories of old used gunnies found in TNCSC godowns. Furthermore, the Telangana Dairy Development Cooperative Federation sought to sell polythene milk sachets. Tamilnadu Newsprint and Papers Limited advertised tenders for the sale of waste and scrap related to polythene sheets, while the Indian Oil Corporation Limited issued tenders for the disposal of insulation and non-recyclable plastic waste generated in Gujarat refinery.
Municipal corporations are actively engaged in the sale of plastic scrap tenders. For instance, Telangana municipality issued tenders for the disposal of damaged old PVC and HDPE pipes. Saharanpur Municipal Corporation in Uttar Pradesh has invited tenders for the auction of plastic waste. Additionally, the Local Administration Secretariat in Puducherry released tenders for e-auctioning of unserviceable articles and scrap items, including plastic scrap, at Oulgaret Municipality through an online e-auction portal.
A diverse set of plastic scrap is sold by government agencies as detailed below: Pradeshik Cooperative Dairy Federation (PCDF) issued tenders for the sale of old empty plastic bags, while the Central Armed Police Forces have invited tenders for empty plastic barrels. The Directorate of Medical Education has released tenders for the purchase of various-sized green-colored waste segregation covers, and the Rajasthan Cooperative Dairy Federation (RCDF) – MD advertised tenders for the sale of plastic crate scrap. Furthermore, the Department of Food Civil Supplies and Consumer Affairs has issued tenders for the sale of unserviceable articles, encompassing LDPE polythene covers, LDPE polythene tarpaulins, and HDPE monofilament nets.
As of December 27th, 2023, there are 17 active tenders for plastic scrap. West Bengal is in the forefront with 5 tenders, comprising 29%, while Haryana, Arunachal Pradesh, Tamil Nadu, Maharashtra, Delhi, and Gujarat each contribute 2 tenders, constituting a total of 12%. This distribution of ongoing tenders underscores a prevalent demand for plastic scrap across diverse regions in India.
Conclusion
This analysis emphasizes a notable demand for scrap materials, encompassing both metal and plastic scrap, within various sectors of Indian government entities and Public Sector Undertakings (PSUs). Given the substantial issuance of tenders for scrap materials on an annual basis. It is advised that vendors specializing in the sale and auctioning of metal and plastic scrap proactively monitor and participate in these tender processes.