Let market forces decide price for e-waste, electronics firms tell Delhi HC

Electronics companies, including Samsung and Voltas, argue that government-mandated pricing for e-waste disposal increases costs and goes against the objectives of the Environment Protection Act

Electronics product manufacturing companies, such as Samsung and Voltas, told the Delhi High Court on Friday that the government should allow market forces to determine the price of electronic waste instead of fixing those prices itself. The electronic waste disposal rules mandate a minimum payment of Rs 22 per kg to recyclers, which the companies claim will significantly increase their costs. The companies are seeking to have these rules quashed, arguing that they are commercially unviable and go against the objectives of the Environment Protection Act (EPA).

 

India’s e-waste management is governed by the E-Waste (Management) Rules, 2022, which became effective on April 1, 2023. These 2022 rules build upon the 2016 rules, which first introduced the concept of Extended Producer Responsibility (EPR). Companies such as Samsung, Voltas, and LG have opposed these rules before the Delhi High Court.

 

 

An EPR certificate is a document that demonstrates a company's commitment to environmentally responsible waste management. It signifies compliance with regulations regarding the collection, recycling, and proper disposal of products, particularly electronic waste, plastic waste, and batteries. The Central Pollution Control Board (CPCB) in India issues these certificates to producers and importers of various products.

 

The government’s objective under the new rules, the companies argued, is to incentivize recyclers rather than solely protect the environment.

 

However, the court remarked that the "move to incentivize the recyclers" was also aimed at "protecting the environment."

 

The lawyer for the electronics companies told the court that the EPR mechanism was working successfully. With the new price regulations, the costs they need to pay to recyclers have increased significantly. The companies claimed that with the minimum and maximum percentage caps of 30 per cent and 100 per cent, respectively, prices have gone up.

 

"Price regulation is being done by the Central Pollution Control Board (CPCB). We need to find a solid legal basis for these new rules," argued the counsel for the companies. He also argued that the new, increased prices felt like a 'penalty' for the companies despite their compliance with the rules.

 

The government had told the court in the previous hearing that it should dismiss the pleas from the electronic companies, stating that they were driven by commercial considerations.