Govt’s draft e-waste rule: Pay to throw so that we learn not to throw

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By Srabani Sen

Recently, the radioactive cobalt found amidst the scrap in Delhi’s recycling market shook the city. India, with its cheap labour and low environmental standards, is fast becoming a sought after dumping ground for e-waste. With no policies and guidelines in place to handle, recycle and dismantle e-waste, manufacturers, particularly in the electronics segment, are going berserk.

Alarming amount of e-waste

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According to Greenpeace, India generates 382,000 metric tonnes of e-waste annually, and by 2011 it will generate 800,000 metric tonnes. Over 95 per cent of this e-waste is illegally segregated, dismantled and recycled in the slum areas of Delhi, Mumbai, Kolkata, Bengaluru and Chennai. It is our love for new technology and gadgets that pushes us to throw out older models—this faster rate of obsolescence has led to the generation of vast amounts of e-waste. Unfortunately, there are only a handful of about 10-12 organised e-waste management companies operating in India. These organisations have so far limited their activities to the disposal of mobile phones and computers.

No dearth of unorganised recyclers

However, there is no dearth of recyclers in the unorganised sector. These recyclers take away our e-waste, making it ‘disappear’ at a low cost. If only we realised that this process is filling up our cities with hazardous waste and choking our waterways.

Govt’s move to control e-waste

To put a stop to this menace and in an attempt to rapidly increase awareness about the need for organised recycling amongst individuals as well as organisations, the Ministry of Environment and Forests, Government of India, has drafted some guidelines for the environmentally sound management of e-waste. The government’s overall aims are summarised in its introduction to the rules: “In order to protect the environment and human health from the potentially harmful effects of e-waste and to facilitate reuse, refurbishment and recovery of useful materials by environmentally sound recycling, thereby reducing the waste destined for final disposal, and to provide incentives for the reduction in the use of hazardous substances by adopting green design, the Central Government hereby proposes to make the following draft rules…”

“India is close to finalising the world’s strictest set of rules on the disposing of e-waste. This new set of rules, which are based on the concept of individual producer responsibility, will give a major boost to the organised e-waste industry in India. However, the rule has some legal ambiguity on the producer’s financial responsibility, which needs to be cleared out before the final notification,” says Ramapati Kumar, adviser, Greenpeace India.

“India is the first developing country to frame such progressive legislation which will not only control the generation of waste at the end stage but will also lead to green electronics products in the market,” says Abhishek Pratap, toxics campaigner, Greenpeace India.

The producers’ financial responsibility in the legislation is being diluted by combining their individual responsibility with shared responsibility for managing future e-waste arising from their products. “For the benefit of the producers as well as consumers, the financial liability of each producer should be explicit and not provided as an option,” adds Pratap.

The rule makes first time producers responsible for the entire lifecycle of the product—from design to waste. The rule also has the provision for the reduction of certain hazardous substances in electronic products. It places a complete ban on the import of all used electronic equipment.

The draft has evoked mixed reactions in the industry. While some welcome it as a good start, others fear that it would go against manufacturers, particularly the small manufacturers. Yet others feel that income tax benefits and other incentives should be given to those who participate.

Electronics Bazaar took the draft rules to a cross section of the industry and sought the reactions of some industry players. We hereby present the overall reaction to our readers.

Industry reactions to e-waste draft rules proposed by the ministry of environment and forests

The rules will go against industry

The e-waste draft rules by the Ministry of Environment and Forests will certainly go against the industry as companies have to find ways to dispose of their ever increasing scrap. It will increase the cost to the manufacturers. But as a social and environmental responsibility, companies need to look into it and cooperate with the government.

Sanjeev Sehgal, MD, Samriddhi Automations Pvt Ltd

Small manufacturers will suffer

Large companies have a wide network, which will enable them to collect the end-of-life equipment and recycle it. Smaller companies may not have such extended networks and so it will be difficult for them, logistically, to collect the end-of-life equipment for recycling. As such, there is concern that the rules will work to the advantage of the larger companies and the smaller companies will face a distinct disadvantage.

K Srinivasan, secretary, Elcina

Recycling process not defined

The policy does not envisage a practically implement-able approach. The scope of the policy defines who has to do what, but not how the e-waste recycling should be done. It does not take into account the intricacies involved in making it practically achievable. Let’s assume that the manufacturer sets up a system to collect the e-waste at the end of its life. Yet, what happens if the waste does not come back due to the end user not following the rules of e-waste disposal? In such a case, the manufacturer’s liability is not defined. These kinds of policies require incentives to promote them rather than forcing them on one segment of society. Since it is a social obligation, there can be a mechanism to incentivise. In not addressing the problem with a solution, the policy creates more complex situations.

Raghu Nandan, associate vice president, Kotak Urja Pvt Ltd

Is the govt washing its hands off?

Through this draft policy, the government is washing its hands of the e-waste issue by putting the whole responsibility of treating and handling e-waste at the manufacturers’ and traders’ end. Some incentive in the form of tax rebates would have been better. The positive side of this draft is that it will create a new sector of e-waste management, generating some employment.

Yogesh Dua, MD, upsINVERTER.com

The economics of e-waste collection requires clarity

While most of the conditions are acceptable in order to save the environment from e-waste, the economics of collecting the e-waste requires more clarity. Also, we want transparency on how this draft will be executed as there shouldn’t be any arm twisting on account of a slow or non-implementation by the producers/dealers/end users.

Sree Kumar, director, Convergence Power Systems Pvt Ltd

Such rules will add to the cost of production

These rules will add to complications and to the cost of production. The major hazardous substances in e-waste are lead solders, which are banned in Europe. The Indian government could also ban lead. By making the mandatory filing of returns shall only encourage corruption. Moreover, a reseller of imported electronics products will not come under the category of a ‘producer’. These people work on wafer thin margins, and giving them the responsibility of e-waste disposal will only burden them.

Alok Gupta, director, Prosem Technology India (P) Ltd

Income tax benefits should be given

On lines of the carbon footprints/carbon credits system, let’s have tradable e-waste credits—though this needs substantial ground work.  The organisation adopting safe e-waste disposal rules can be given Government of India certified e-waste/e-safe credits that can be encashed to get custom duty benefits while importing, for example, tin free solders or such high-value / low-environment-impact components. We need to have an e-waste exchange where such credits can be traded. Or the organisations following all the e-waste disposal rules should be given some income tax benefits. The government being one of the major consumers of electronics products, a Directorate of e-Waste should be established.

Dr Prakash, head, intellectual property, Dusane Infotech (India) Pvt Ltd

Draft rules lack details

There should be a provision that after being supplied to a user, if a product is repaired by any party not authorised by the manufacturer, then the responsibility of the manufacturer as regards e-waste will cease to exist and the party that takes charge of repairing it, will be responsible for the e-waste disposal.

Arunava Mukerji, governing director, W J Alcock & Co (Pvt) Ltd

All categories need to be defined

The categories/types of electrical and electronic equipment to which these rules apply, need to be defined, similar to the 10 categories listed in the WEEE  Directive of the European Union.

Pankaj Gulati, executive VP, Continental Device India Ltd

Implementation is major issue

The policy looks impressive. It’s a document that we surely can be proud of…if even 50 per cent of the rules get implemented. If not implemented, well, this won’t be worth the paper it is written on. It could be a challenge to implement the rules. In fact, it requires more details on how individual makers, dealers and vendors can be responsible. What about makers of unbranded stuff or unbranded goods? Similarly, will we have an enforcement agency? Actually, the document is more procedural (which is essential), but could have more details delineating the responsibility of the makers of gadgets and their users. A good beginning, nevertheless.

S Uma Mahesh, co-founder and CEO, Indrion Technologies

The government should give incentives

I feel the government should provide some additional incentives for those who adopt e-waste workflow management in the electronic format, instead of the paper based approach which is not environment friendly. It’s a good starting point.

Shiv Kumar, executive vice president, Zylog Systems Ltd

A welcome step

This is a welcome step and we as manufacturers of electronic goods undertake to abide by the rules. It will clean up our environment, and benefit society and mankind as a whole.

Kapil Sood, MD, Amptek

Govt e-waste disposal centres needed

We suggest that instead of going through many routes for e-waste disposal, the government should set up centres (government controlled or private), where scrap could be sold as per government notified rates. Also, the destruction of e-waste should be done as per government guidelines.

R K Bansal, MD, Uniline Energy Systems Pvt Ltd

Draft rules are comprehensive

We owe a clean and safe earth to the next generation. The e-waste draft rules are quite effective and comprehensive.

Praveen Das, head, direct sales & marketing, IOL Netcom Ltd

Good initiative, industry should support it

This is a very good initiative by the government and will certainly save humankind from the hazards caused due to e-waste. Industry should extend its full support to this initiative.

Anil Joshi, Artheon Group

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