Strengthening EPR with deposit return system for waste management

A 2022 study by the Centre for Science and Environment (CSE) found that India recycles about 12% of its plastic waste. Media reports sometimes cite higher figures, mostly referring to PET bottles, which have a high resale value compared to other plastics. Less discussed is that about 40 per cent of plastic packaging is non-recyclable and has no market value, such as multi-layered packaging (MLP) used for snacks and food. Since they have no resale value, they are mostly littered, burnt, or dumped. Even high-value plastics face challenges outside urban areas, where collection systems are patchy or non-existent. This leaves India with two problems in plastic waste management: even valuable plastics can be difficult to collect, and low-value ones are rarely collected.

To address this, the 2016 Solid Waste Management Bye Laws introduced Extended Producer Responsibility (EPR). It assigns Producers, Importers and Brand Owners (PIBOs) responsibility for their plastic packaging. In turn, PIBOs fund collection through authorised recycling agencies working with municipalities and panchayats, or buy credits/certificates from recyclers. This has expanded collection, especially for low-value plastics that were previously ignored. In remote places like the Andaman and Nicobar Islands and the North East, EPR has made recycling possible even for high-value plastics by covering high transportation costs. Still, operational gaps remain.

In 2024, reports stated six lakh fake EPR certificates across four states, worth ₹355 crore. Some recycling centres had overstated capacity, while others were found to be non-operational. The Central Pollution Control Board (CPCB) ordered reverification, but only for recycling agencies, not for PIBOs that bought the fake certificates. Since EPR lacks state-specific targets, PIBOs prefer credits with the lowest costs. Certificates presently sell for about ₹ 0.5 to ₹ 1.5 per kg, well below on-ground costs, especially from remote areas. For instance, such costs are far higher in Ladakh or Aizawl than in Delhi or Mumbai.

This raises questions regarding pricing, transparency, and monitoring across the waste chain, from collectors and recyclers to PIBOs. While EPR has laid an important foundation, it needs strengthening to deliver its promise to support plastic waste management. One way to strengthen it is through a complementary system such as the Deposit Return System (DRS), already used in more than sixty countries. DRS models require consumers to pay a small deposit when buying packaged goods, which they receive back on returning the packaging. This incentive encourages recovery and reduces littering. DRS also nudges PIBOs toward shared responsibility through transparent and traceable collections aided by technology, creating a verifiable chain of accountability across the value chain. When combined with EPR, it can bridge participation and enforcement gaps, making waste recovery a shared responsibility.

While traditional DRS systems depend on costly deposit machines, an Indian version must be low-cost and community-based, using local shops and collection points. This model would work especially well for low-value plastics. Paying a small deposit and getting it refunded gives consumers a reason to return packaging rather than discard it. In Kedarnath, a pilot led by the Rudraprayag district administration has successfully channelised nearly 80% of plastic bottles over the past four years preventing thousands of kilograms of waste from entering rivers and safeguarding the region’s fragile Himalayan ecosystem. Goa recently became the first state to legislate DRS, allowing citizens to deposit plastic packaging for refunds. With Goa, for the first time in the world, DRS includes multi-layered and low-value plastics, setting a global precedent for traceable and accountable waste recovery.

India’s waste challenge cannot be solved by regulation alone. EPR has laid the foundation for producer responsibility, and systems like DRS can complement it by linking value to behaviour, rewarding recovery, and making accountability more visible and fairer.