Govt introduces strict EC guidelines for violations of battery waste rules

Failure to meet the targets can result in financial penalties, usually called EC, promoting more sustainable waste management and encouraging eco-friendly product design

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The Ministry of Environment, Forest, and Climate Change (MoEFCC) has introduced stringent environmental compensation (EC) guidelines to penalise violations of the Battery Waste Management (BWM) Rules, 2022.

These guidelines were issued by the Central Pollution Control Board (CPCB) on September 10.

Penalties will be enforced not only for non-compliance with battery waste regulations but also for failing to meet metal-wise extended producer responsibility (EPR) targets.

With different battery chemistries involving varying recycling costs, the government has set differentiated EPR credit costs, ranging from Rs 18 per kg for lead batteries to Rs 2,400 per kg for lithium batteries.

This structured approach ensures that producers are held accountable for managing battery waste according to the environmental impact and recycling complexity of each type of battery, according to the guidelines.

EPR targets are environmental regulations that require producers to manage the entire lifecycle of their products, including their disposal and recycling.

For battery manufacturers, this means that ensuring a specific percentage of batteries are collected and recycled after use. Targets are set based on the type of material, like lead or lithium. Failure to meet these targets can result in financial penalties, usually called EC, promoting more sustainable waste management and encouraging eco-friendly product design.

The CPCB has been tasked with developing and implementing guidelines to impose and collect EC from non-compliant entities.

These measures aim to promote proper waste management practices and enhance environmental sustainability across the country.

The EC will be levied progressively for non-compliances unrelated to EPR shortfalls.

For a first default, the EC is set at Rs 20,000, equivalent to the application fee for registration under the BWM Rules. For the second default, the penalty doubles to Rs 40,000, and for the third, it escalates further to Rs 80,000.

This tiered system is designed to encourage compliance by imposing increasingly steep financial penalties for repeated violations.

Entities found violating the BWM Rules must deposit their EC and financial penalties within a specified time frame. If payment is delayed, penalties will increase accordingly.

Delayed deposits made within one month of the deadline will incur 12 per cent annual interest on the original amount. Deposits made after one month but within three months will be subject to 24 per cent annual interest.

If payments are delayed beyond three months, the government will impose stricter sanctions, including closure of the unit. They may also include seizure of trade documents, and further legal action under the Environmental Protection Act (EPA).

According to data from the MoEFCC, 252 recyclers are registered with the CPCB.