Business model for EPR based e-waste management system

In India, e-waste (Management & Handling) Rules 2011 provide regulatory framework based on “pollution prevention” with “polluter pays principle” under “extended producer responsibility” (EPR). Their enforcement from 1st May 2012 raises major issues: (i) start up of EPR based system; (ii) secure finance; (iii) organize take back mechanism; (iv) ensure compliance; and (v) monitor across the supply chain. The absence of “collection targets”, “take back infrastructure” and “financial instrument” increases producers business risk of non compliance, while, increased cost of product increases their market risk. Linkage of “Viability gap financing” (VGF) under “public private partnership” (PPP) mechanism with the collection mechanism of existing recyclers during transition period offers (1) additional financial flow to exert “pull” for collection in supply chain; (2) incentive to end users; (3) certification of compliance and (4) monitoring mechanism across the chain. This mechanism can trigger development of producers' responsible organization and financial instrument to replace VGF.