Paper: GS – III, Subject: Environment, Ecology and Disaster Management, Topic: Waste Management, Issue: Implications of the recent e-waste management rules.
Context:
India’s updated E-waste rules (2024) mandate a floor price of ₹22/kg for e-waste to procure Extended Producer Responsibility (EPR) certificates. Major electronics companies and recyclers argue this regulation is market-distorting, economically unsustainable, and hampers formal recycling.
Key Highlights:
- E-waste scenario in India:
- E-waste in India more than doubled in 5 years to over 1.6 million tonnes.
- 90% still handled by informal sector with low recovery efficiency.
- Floor Price Rule (March 2024): Sets ₹22/kg as the minimum price to acquire EPR certificates.It aims to ensure formal recycling by licensed recyclers and prevent pollution.
Issues with Current E-waste Rules:
- Distorts Market Dynamics: It disallows price negotiation based on market demand/supply. Current floor price is too high – market bids are as low as ₹5.90/ kg.
- Disincentivizes Recyclers: Informal recyclers are pushed out due to high compliance and upgrade costs. Formal recyclers also struggle due to limited funding and poor infrastructure.
- Fails ‘Polluter Pays’ Principle: The rules place recycling responsibility on producers instead of polluters. It makes regulation environmentally ineffective and economically burdensome.
Structural Challenges:
- CPCB (Central Pollution Control Board): Budget allocation insufficient at ₹126 crore (2025-26), despite ₹8.25 trillion electronics production. Only 1% of collected compensation disbursed for environmental use.
- Weak Institutional Capacity: Staffing strength fell from 389 to 379 (2017–2023), despite increase in sanctioned posts. High vacancy rates delay implementation.
Measures needed:
- Strengthen CPCB Capacity: Improve technical and financial capacity, Sanction and fill vacant posts, allocate dedicated staff for e-waste compliance.
- Abolish or Recalibrate Floor Price:
- Withdraw the rigid price floor and allow market-driven pricing for recyclers.
- Encourage direct contracts between producers and recyclers at fair rates.
- Formalize the Informal Sector:
- Train and integrate informal workers into formal recycling chains.
- Offer access to finance, tools, and EPR-linked incentives.
- Follow models like Brazil’s co-operatives for informal waste pickers.
ILO Recommendations:
- Urges formal inclusion of informal workers in sectors like waste management.
- Enhances social protection, income security, and scalability of circular economy initiatives.
Conclusion:
A rigid floor price is not a sustainable tool for e-waste control. India’s e-waste strategy must focus on building formal infrastructure, encourage public-private collaboration and empower informal workers through finance, skill-building, and institutional recognition.
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