Tata Steel, a steel manufacturing company, is setting up India's first scrap recycling plant in Rohtak, Haryana.

The unit will be set up on built, own and operate (BOO) model. It will have a capacity of five lakh tpa.

The company has entered into a long-term BOO agreement with Aarti Green Tech, a unit of the Ludiana-based Aarti Steels, to implement and run the unit.

The company will set up a steel recycling business to meet the growing demand for steel. The move will help formalise scrap market in the country and help transition to a scrap-based steel-making route in the long-term.

An investment of Rs 150 crore will be made in the project. The company expects to commercially start producing in H2/FY20.

The company plans to use digital platforms and channel networks to collect scrap from various segments. The scrap will be processed through mechanised equipment and utilised as an input raw material for downstream steel-making through the Electric Arc Furnace route.

The company further plans to set up more such units across the country.