Navigating India's Plastic Waste Regulation

The world produces an enormous volume of waste across various categories such as electronics, consumer goods, food, and more. The waste is choking the world, and this crisis is posing significant challenges to the preservation of our environment and the well-being of all living creatures that call it home.

In today's world, effective waste management is very critical for any country including India, which is rapidly emerging as one of the world's largest producers of plastic waste. Plastic has become an integral part of everyone's day-to-day life resulting in ever surging plastic waste, which has become a severe environmental and public health threat, with consequences that demand immediate action. To tackle the growing issue on an urgent basis, the Indian government has introduced a comprehensive set of regulations. These measures aim to reduce plastic waste, promote recycling, and encourage the use of sustainable alternatives. Equally important, the government is emphasizing the need for public engagement and corporate accountability, recognizing that the solution to this pressing issue requires collective effort at every level of society.

Furthermore, the Indian Government has recently introduced several additional waste management regulations. In the past, we have shared our insights on some of these regulations, including those pertaining to batteries, end-of-life vehicles, and e-waste. Below is a piece that will familiarize readers with the legal intricacies of plastic waste management and recent developments, as well as provide indicative guidance on compliance with the regulations.

Regulatory Landscape:

To tackle and manage plastic waste, the Ministry of Environment Forest and Climate Change ("MoEFCC") promulgated the Plastic Waste Management Rules, 2016 ("PWM Rules") which provide a comprehensive regulatory framework aimed at addressing the growing challenges posed by plastic waste in India. The PWM Rules superseded the Plastic Waste (Management and Handling) Rules, 2011 to enhance the management of plastic waste through a structured approach. These PWM Rules came into effect on March 18, 2016, and have undergone several amendments, the latest in January 2025, to adapt with the evolving environmental needs.

Applicability:

The PWM Rules apply to a wide range of stakeholders, including waste generators, local bodies, Gram Panchayat, producers, manufacturers, importers, brand owners, and plastic waste processors (recycler, co-processor, etc).

Overall, the PWM Rules mandate that all entities involved in the production and management of plastic packaging must comply with the Extended Producer Responsibility ("EPR") framework, which is designed to ensure that producers are accountable for the entire lifecycle of their products, from production to disposal.

Extended Producer Responsibility (EPR):

EPR guidelines, outlined in Schedule II of PWM Rules, are a crucial component of the PWM Rules. It aims to ensure accountability for the entire lifecycle of plastic packaging including marking and labelling requirements under Rule 11 of the PWM Rules. The updated EPR guidelines established a more structured, organised, and enforceable system that extends to both pre-consumer and post-consumer plastic waste.

Compliance: The EPR obligations are mandatory for multiple entities, which include producers, importers, brand owners, plastic waste processors, plastic raw material manufacturers and importers, and manufacturers of compostable plastics or biodegradable plastic items ("Obligated Entities").

Targets: As per EPR guidelines, the EPR targets are determined category-wise (discussed below), with specific percentages set for respective Obligated Entities each year.

Categories: The categories of plastic packaging are classified into five (5) main types –

• Category I: Rigid plastic packaging.
• Category II: Flexible plastic packaging, including single-layer and multilayer options.
• Category III: Multilayered plastic packaging.
• Category IV: Plastic sheets and carry bags made from compostable plastics.
• Category V: Plastic sheets and carry bags made from biodegradable plastics.

Each category has specific recycling and end-of-life disposal targets, ensuring that the EPR framework addresses the unique challenges associated with different types of plastic waste.

Obligated Entities must register on a 'Centralized Portal' developed by the Central Pollution Control Board ("CPCB"), launched in April 2022, if they are operating in one or two states; otherwise, they must register with the respective State Pollution Control Board ("SPCB") or Pollution Control Committee ("PCC"). This centralised portal facilitates registration, tracking, reporting, and trading of plastic certificates, enhancing accountability and transparency in plastic waste management.

Furthermore, the PWM Rules specify certain exemptions. For instance, Rule 2(2) states that the provisions of Rule 4 (i.e. Conditions) do not apply to export-oriented units or units in special economic zones that manufacture products against an order for export, with specific exceptions for units involved in packaging gutkha, tobacco, and pan masala. Additionally, Rule 2(3) clarifies that certain sub-rules do not apply to these export-oriented units, particularly regarding pre-consumer plastic packaging waste generated during the manufacturing process.

Additionally, any applicable compliance under Solid Waste Management Rules, 2016 is to be adhered to as plastic waste is part of solid waste, and both the rules are applicable for the safe and sound management of plastic waste at the end of its life.

Environmental Compensation Regimes:

On January 8, 2021, the Hon'ble National Green Tribunal, directed the CPCB, SPCB, PCC, and other relevant authorities to adopt the process of Environmental Compensation ("EC") and penal action as per the guidelines proposed by the CPCB1. In terms of the above directions, the CPCB developed the  "Guidelines for Assessment of Environmental Compensation for Violations of Plastic Waste Management Rules, 2016" ("EC Guidelines") based on the principle of "polluter pays" as mandated under Rule 9 of the PWM Rules. In August 2024 the CPCB revised the EC Guidelines2 by incorporating the following changes:

1. EC for Plastic Waste Management:The EC regime for plastic waste management is based on the cost of collecting plastic waste which is about Rs. 4000 per ton. The development and setting up of plastic waste management infrastructure for segregation, collection, storage, transportation, processing, and disposal of plastic waste is the responsibility of the local bodies and the producers/brand owners. To ensure equal cost sharing, the EC is equally split between them. Further, to ensure that the EC acts as a deterrent, a factor of 2.5 is applied, resulting in a total EC of Rs. 5,000 per ton for the local bodies and the producer/importer and brand owners, respectively.
2. EC for Violation of EPR: The EC factor is inversely proportional to the collection of the category of plastic packaging waste. Hence, the EC for Category I, Category II, and Category III of plastic packaging waste is Rs. 2900, Rs. 5000, and Rs. 7900 per ton respectively. The EC for compostable plastic packaging waste or Category IV plastic packaging is considered the same as Category III, which is Rs. 7900 per ton, as it is not possible to identify and segregate compostable plastics.

Recent Development:

MoEFCC recently, in January 2025, notified Plastic Waste Management (Amendment) Rules, 2025. The said amendment introduces the following new mandates:

1. Marking & Labelling: Effective from July 1, 2025, the producer, importer, or brand owner may provide prescribed information on each plastic packaging under Rule 11(1) in the following manner –

1. in a barcode or Quick Response (QR) code
2. in the product information brochure
3. in issued unique number

2. Action for Contravention (Penalty): Failure to comply with the PWM Rules will result in penalties for any person under Section 15 of the Environment (Protection) Act, 1986 ("EP Act"). Meaning, that the penalty for violating the provisions of the EP Act and associated rules, such as the PWM Rules, for which no penalty is specified now includes a fine of Rs. 10,000 up to Rs. 15,00,000. If the violation persists additional penalty of Rs. 10,000 for every day is charged to any person during which such contravention continues.

Conclusion/Take Away:

India faces a significant challenge in managing plastic waste, with approximately 23.9 million tonnes of plastic packaging introduced into the market annually, of which 65% is categorised as flexible plastics, known for their difficulty in collection and recycling. The EPR framework, established under the PWM Rules, mandates that PIBOs collectively recycle 8.4 million tonnes of plastic packaging by March 2025, which represents 35% of the total plastic packaging introduced3. Despite these targets, India struggles with a recycling capacity of only 9.82 million tonnes, indicating a substantial gap between plastic waste generation and processing capabilities. To begin with, for the companies that are covered as Obligated Entities (discussed above), the following steps should be taken to comply with the law and to actively contribute to the EPR framework established:

• Register on the Centralized Portal
• Develop Action Plan
• Maintain accurate records
• File Annual Returns
• Establish Collection and Segregation Infrastructure
• Implement Collection Schemes

In conclusion, the PWM Rules, along with their amendments, provide a comprehensive regulatory framework aimed at mitigating the environmental impact of plastic waste in India. Through the implementation of EPR, active participation from various stakeholders, and a robust compliance mechanism, these rules seek to promote sustainable practices in plastic waste management. However, addressing the challenges of awareness, infrastructure, and compliance will be essential for achieving the desired outcomes and ensuring a cleaner and more sustainable environment for future generations. The efforts of all stakeholders involved will be crucial in realizing the objectives of the PWM Rules and fostering a culture of responsible plastic waste management in India.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.