New recyling price regulations spark a new controversy. Arguing that they are imposing burdens on OEMs while benefiting recyclers, MeitY has taken the side of electronic manufacturers.
The Ministry of Electronics and Information Technology (MeitY) has recently opposed new draft guidelines set by the Central Pollution Control Board (CPCB) regarding minimum recycling prices for various types of electronic waste as electronic and telecom manufacturers are struggling.
Under the proposed guidelines issued by the Ministry of Environment, Forest and Climate Change, producers can purchase extended producer responsibility (EPR) credit certificates from recyclers to meet their annual e-waste targets.
During a meeting on Monday with representatives from the CPCB, the environment ministry, and stakeholder associations, MeitY officials sided with associations representing mobile phones, consumer electronics, and telecom equipment, arguing against the need for a floor price while supporting a maximum price.
Besides, companies have voiced concerns that the guidelines disregard fair-market principles. Many have existing mid to long-term agreements with recyclers at prices significantly lower than the government’s minimum price, leading to increased financial burdens on producers while benefiting recyclers.
According to them, the draft guidelines have set the recycling price for end metals almost three to twelve times more than the current market prices.
Additionally, they claim that the CPCB based its pricing data solely on recyclers, ignoring their lower price data. They argue that relying on average recycling costs lacks transparency, as recyclers operate under varying efficiencies based on capacity, technology, and material recovery rates.
The rules have affected nearly 120 products, including mobile phones, telecom equipment, televisions, laptops, washing machines, and audio systems. Manufacturers have expressed frustration that despite disagreements noted in an August 8 steering committee meeting, the decision to regulate EPR credit prices was still released.
Electronic firms also raised concerns about potential bias favouring recyclers, stating that only manufacturers are liable for guideline violations, not the recyclers themselves.
