With India targeting net-zero emissions by 2070, the regime on waste disposal, processing and recycling has become a focal point for the government. At the heart of India’s waste regulatory regime lies the mandate to make producers responsible for managing the waste generated by their products. To this end, the requirement of meeting Extended Producer Responsibility (EPR) targets has been imposed on those manufacturing, producing, or importing products which may generate specific kinds of regulated waste. This requirement has been provided under the Plastic Waste Management Rules, 2016 (Plastic Waste Rules), Battery Waste Management Rules, 2022 (Battery Waste Rules), and E-Waste Management Rules, 2023 (E-Waste Rules) (collectively, Rules).

For businesses dealing with plastic, battery and e-waste, the risk is two-fold. For those operating without obtaining necessary registrations under these Rules, non-compliance is likely to attract severe penalties and even closure of business for certain violations. Secondly, given the reputational risk, and with the growing focus of consumers towards sustainability and investors towards ESG issues, it is important for businesses to understand the prevailing waste disposal regime and make compliance a priority.

• Plastic Waste

  Plastic Waste Rules provide the regulatory framework for managing plastic waste. These rules have already banned the use of several single-use plastic items such as earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, plates, cups, glasses, cutlery such as forks and spoons, and cigarette packets. The regime prescribes the management of a wide variety of plastic packaging: rigid, flexible, multi-layered, compostable and biodegradable plastics, and plastic carry bags.

  Plastic Waste Rules cast statutory obligations on ‘Producers’, ‘Importers’ and ‘Brand Owners’ (PIBO) of plastic waste (entities that introduce plastic into the economy), in the form of EPR obligations. EPR represents the idea that the introducers of plastics are responsible for the environmentally sound management of plastics and ensuring their end-of-life disposal.

  As a starting point, PIBOs must register on the centralised EPR portal of the Central Pollution Control Board (CPCB) (www.eprplastic.cpcb.gov.in) (Plastic Portal). An entity may qualify under multiple categories, for example, it could be both an importer and a brand owner. In such a case, registration is mandatory under both categories. As part of the registration process, PIBOs are required to supply relevant information to the authorities, such as the weight of plastic sold in the market each year. Based on this information, the Plastic Portal automatically calculates the EPR targets for PIBOs. The Plastic Portal will indicate the amount/type of plastic that should be recycled and reused. Once recycled, it is the PIBO’s responsibility to ensure that a minimum amount of this recycled plastic is used in future plastic packaging. The aim of EPR is therefore to ensure the circular use of recycled plastic to the maximum extent possible, instead of bringing virgin plastic into the economy. The plastic that cannot be recycled/reused has to be sent for end-of-life disposal, such as for road construction, waste to energy, oil, cement, etc.

  PIBOs must file recycling certificates, details of quantity sent for end-of-life disposal and annual reports on the Plastic Portal. Simultaneously, waste processors (recyclers, co-processors) must also register and make their filings (the amount of waste processed) on the Plastic Portal. The details provided by PIBOs, and registered waste processers are then cross-checked by the portal. Pollution Control Boards ensure annual compliance with EPR obligations through inspections and audits.

  PIBOs are not allowed to carry on their business without such registration. Failure to comply may lead to severe penalties, including closure of the business and high environmental compensation, calculated in accordance with the guidelines published in September 2022 by the CPCB (often calculated on the basis of INR 5,000 per ton of plastic mismanaged). If registered entities commit violations, they run the risk of their registration being cancelled and stop-work orders being issued, in addition to the levy of environmental compensation on the basis of the polluter pays principle and the guidelines.

• Battery Waste

  The Battery Waste Rules set out the regulatory framework for the management of all types of waste batteries, including industrial, portable, automotive, and electric vehicle batteries. These rules impose registration and EPR obligations on the ‘producers’ of batteries. Producer is a wide term. It refers to all persons who manufacture and sell, only sell, or import batteries and equipment containing batteries.

  A producer under the Battery Waste Rules must register on the centralised online portal of CPCB: http://www.eprbatterycpcb.in/ (Battery Portal). Based on the quantity of batteries placed in the market each year, the percentage of battery material in different batteries and other information, the Battery Portal calculates the EPR targets of the producer. Producers must then ensure refurbishment and/or recycling of batteries to achieve these EPR targets. For this, a producer can either itself recycle or refurbish waste batteries, or purchase EPR certificates¹ of waste batteries from recyclers and refurbishers, or purchase EPR certificates from producers with surplus certificates. Further, producers are expected to ensure that a minimum amount of domestically recycled battery material is used in the new batteries. The aim is therefore to ensure the circular utilisation of recycled battery material and to reduce reliance on fresh battery material. This way, the Battery Waste Rules place the final responsibility of ensuring a circular economy on the producers.

  Producers, recyclers and refurbishers must regularly submit EPR plans, annual returns, weight and type of batteries placed, recycled or refurbished in the market. The information provided by various stakeholders is cross-checked by the portal.

  Under the Battery Waste Rules, producers are not allowed to carry on any business without registration. They also provide for the imposition of compensation if the entities carry on their business without registration or provide false or no information as required under the rules. The guidelines on how such compensation will be levied are yet to be published.

• E-waste

  The latest E-Waste Rules have been in effect from 1 April 2023. E-waste has been broadly defined as electrical and electronic equipment (i.e., equipment dependent on electric or electromagnetic field) wholly or in partly discarded as waste, as well as rejects from manufacturing, refurbishment and repair processes. Schedule-I to the E-Waste Rules provides the categorised lists of such electrical and electronic equipment which, interestingly, range from IT equipment to kitchen appliances. The EPR responsibility lies on a ‘producer’, i.e., a person who manufactures and sells, only sells, or imports to sell the electrical and electronic equipment.

  A producer of electrical and electronic equipment must register under the centralised online portal of the CPCB: https://eprewastecpcb.in/ (E-Waste Portal). Based on the information about the quantity, type and life cycle of products placed in the market by producers, EPR targets will be determined by the E-Waste Portal. Producers are expected to meet these targets through online purchase of EPR certificates (proportionate to its targets) from registered recyclers. A producer may also defer its EPR targets to subsequent years by purchasing refurbishing certificates from registered refurbishers. The details provided by producers, registered recyclers and refurbishers will be cross-checked on the E-Waste Portal. Since the new E-Waste Rules have only recently come into force, further details on the regime are expected soon.

  It is noteworthy that the Rules expect compliance to become effective in a phased manner. This aims to give sufficient time for businesses to re-evaluate their business practices and make waste management a part of their regular business operations.

  EPR responsibility lies entirely on those who place e-waste in the market and therefore manufacturers manufacturers of electrical and electronic equipment who do not sell it to consumers (but further to a dealer who places it in the market) do not have EPR responsibilities. Nonetheless, such a manufacturer is required to register on the E-Waste Portal and to also collect e-waste generated during the manufacture of any electrical and electronic equipment and ensure its recycling or disposal.

  E-Waste Rules prohibit the carrying out of any business without registration. CPCB is expected to come out with guidelines for the imposition and collection of environmental compensation.

• Conclusion

  The Rules aim to make India a circular economy in waste management. They aim to reduce reliance on fresh/virgin material for the manufacture of plastics, batteries and electronics and increase focus on utilising recycled materials. While clarity is expected on several aspects of these Rules, for instance, the purchase and sale of EPR certificates, and the minimum use of recycled material (in batteries and plastics), Pollution Control Boards have been actively pushing entities to register under these Rules.

  There have also been a series of court cases on the various requirements under the Rules. On the one hand, industry stakeholders have challenged certain provisions on account of practical difficulties in implementing them. On the other, there have been writ petitions in the public interest raising the alarm on the harmful effects of environmental degradation caused by these waste materials.

  It is noteworthy that the Rules expect compliance to become effective in a phased manner. While some obligations, such as registration, recycling, etc. become due immediately, other obligations, such as the minimum use of recycled materials in making new products, will become due in the future (such as for producers of plastic waste, minimum use obligations commence from 2024-2025). This aims to give sufficient time for businesses to re-evaluate their business practices and make waste management a part of their regular business operations.

  In the future, registrations under these Rules are expected to form part of consolidated consents (a pre-requisite for conducting business) issued under the Air (Prevention and Control of Pollution) Act, 1981, the Water (Prevention and Control of Pollution) Act, 1974, and the Hazardous Waste Management Rules, 2016.

^[1] Certificates of waste batteries are issued to registered recyclers and refurbishers by the CPCB on the Battery Portal.

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