Until a few years back, e-waste recycling in India hardly saw any action from the organised players. But the picture is rapidly changing now with players like Attero Recycling and Eco Recycling venturing into this so far unexplored business segment in a big way to tackle the mounting amount of e-waste generated in the country in a more scientific and environment friendly manner.
The entry of organised players into e-waste recycling should be seen as a blessing for a developing country like India, which generated approximately 440,000 tonne of e-waste in 2008 alone. Various reports predict that India’s e-waste generation is growing at a rate of more than 20 per cent and is expected to cross 800,000 tonne mark by 2011.
Although e-waste is a part of hazardous waste and authorised recyclers are only supposed to treat them with required infrastructure and processes in place, so far it was unorganised players, whom we could classify into scrap dealers and kabadies, who shouldered the responsibility of recycling the huge amount of e-waste generated in the country. As per the available figures, India generated around 380,000 tonne of e-waste in 2007 and only 3 per cent of it made it to the authorised recycling facilities. The rest were handled (improperly) by the unorganised sector. However, the entry of organised players into this much promising business segment is a clear indication that trends are changing in India for better.
“So far this segment was dominated by the scrap dealers or kabadies. The way they recover various fractions from the e-waste is really very harmful to the environment,” pointed out B K Soni, chairman, Eco Recycling Limited to Recycle Now. “Other than the environmental aspect, I certainly looked at this as a business opportunity, since e-waste generation is directly proportionate to the growth in sales of new computers, telecom connections and other electrical and electronic equipment,” he added throwing light on what inspired him to venture into this nascent business segment.
Though several new entrants are viewing e-waste recycling as a pure business opportunity, with required infrastructure and processes in place most of these players seem to be well positioned to recycle the rocketing quantity of e-waste generated in the country in an environmental friendly and more (socially) responsible manner.
Indicating that the entry of organised players into the country’s e-waste recycling scene was indeed the need of the hour, Rohan Gupta, co-founder and chief operating officer, Attero Recycling, quipped: “With rapid changes in technology and planned obsolescence by leading companies to push newer products, e-waste is growing at an alarming rate. Electronic goods have a number of components, several containing toxic substances which can be harmful to human health and the environment. A common example to stress the adverse effects of e-waste on the environment is that of cathode ray tubes (CRTs). These contain high percentage of substances such as phosphor, lead, barium etc and if disposed in a controlled environment, they do not pose a serious threat to the environment.
“However, breaking these tubes or disposing them in an uncontrolled environment would results in tubes releasing harmful toxins into the soil and air. Recycling of e-waste by the unorganised sector leads to emission of hazardous chemicals into the environment which is a threat to the world and life on it. Besides, the unskilled labourers engaged in the dismantling and extractions of recyclable material are exposed to these hazardous substances daily and are prone to serious life-threatening diseases. Also, only a small percentage of e-waste is recycled in the informal sector and the rest is disposed of without any thoughts to the environment. The unorganised sector recyclers do not have any means to dispose this harmful waste and the environment has to bear the brunt of their irresponsibility. Organised recycling of this hazardous waste is the only answer to the problems existing.”
Recycle Now’s attempts to learn the modus-operandi of scrap dealers also confirmed crude and unsafe practices employed by them for recycling e-waste, resulting in severe environmental and health hazardous. Some of the processes involved soaking of circuit boards in acid, followed by manual scrapping to extract metals with the residue thrown into open drains. We learnt such unchecked activities without proper protection to workers are hazardous not only to labour involved but also to environment. The solution to this vexing issue, as pointed out by several industry players, seems to be the organised recycling by the organised players.
Now that the recycling of electrical and electronic wastes is seeing the increased flow of organised players, and one could say it is taking the shape of an industry, which will be amongst the most vibrating industries of the coming decade.
However, when it comes to the awareness about e-waste recycling among the public, India cuts a sorry picture. Not many are aware that e-waste contains reusable commodities or even e-waste could be recycled.
Pointing to the importance of recycling e-waste, Mr Soni said: “E-waste consists of almost 92 to 95 per cent of reusable commodities and if these are fully recycled then the burden on depleting natural resources may be substantially brought down. By resorting to recycling, the reusable commodities can be recovered at lesser the prices than the fresh material from the mines. In addition, recycling e-waste would help us save on electricity, man power, reduce carbon emission and reduce capital investments in new plants for producing same commodities out of ores. The process can be divided in to collection, transportation, sorting, dismantling, size reduction, segregation, extraction and disposal.”
One of the main reasons why recycling of e-waste hasn’t really taken off in India is the lack of awareness about the importance of recycling. Mr Soni rightly puts it: “At the corporate level there is a great understanding of the implications of improper handling of e-waste but at the individual level there is a need of awareness to be developed.”
Endorsing a similar point of view, Mr Gupta provided a clear picture: “E-waste comprises a steadily multiplying range of obsolete electronic devices such as computers, monitors, TVs and display devices, telecommunication devices such as cellular phones and pagers, calculators, audio and video devices, printers, scanners, copiers and fax machines besides refrigerators, air conditioners, washing machines, microwave ovens and so on. Currently, there is low awareness amongst people regarding e-waste. They just give their waste to scrap dealers and kabadiwalas (unauthorised recyclers).We believe the awareness in Bangalore and Chennai is good. This is a very niche and new concept and has a great potential but it is critical to create awareness among the masses now.”
Apart from the lack of awareness among the public, Recycle Now learnt the cumbersome process of (e-waste) disposal for individuals and poor marketing of the (recycling) concept were the other major factors that paved way for the poor response to the electronic waste recycling programmes in India. Besides, as of now there are no monetary incentives to lure the Indian consumers. It is also learnt that only two per cent of computers are sold to recycling companies, while 48 per cent are sold back to vendors or through exchange schemes.
However, in a bid to bring out a change to the existing conditions, some of the players are devising plans to reach out to the end consumers for the collection of e-waste. Attero is one such company. Its COO Mr Gupta said on a positive note: “Though now we are directly associated with only the producers and corporate sectors, we are working on a model to reach the end consumer’s doorstep also. This is a very niche and new concept and has great potential but it is critical to create awareness among the masses now. On the other hand, with corporate governance and corporate social responsibility gaining momentum, we are expecting various public and private sector units to start partnering with integrated e-waste solutions providers to manage their e-waste.”
The entry of organised players, however, doesn’t close the doors completely behind unorganised sector, which has been within its limitations recycling e-waste so far. If the words of Mr Soni are anything to go by, they have got an important role to play in the days to come. “It is a wonderful industry which helps protect ecological balance, environment and the health of all the stakeholders. The unorganised sector can continue to contribute in supply chain and the authorised recyclers can process the e-waste. It is a win-win situation for all the stakeholders and the society in general,” he noted.
Asked whether we have advanced technologies for recycling e-waste, he quipped: “We do not have and at this point of time we certainly do not need very high end technologies and complete automation. It is transitional phase; with the greater awareness and supplies the same may be gradually implemented.”
CALL FOR AID
Given the benefits of recycling e-waste, there is a general feeling that it’s high time the government came up with ample regulatory and fiscal policies to support organised players establish their foot in this budding business segment.
“Since it is new and capital intensive industry, it requires government support, which is practically missing at this point of time,” noted Mr Soni of Eco Recycling. He added: “At this point of time of transformation, government should do what is needed to promote industry in the best interest of environment, ecology and health of one and all. This industry does not need a big amount from the exchequer but can bring back in multiples by having better environment.”
As of now, there are no laws specific to e-waste by the government. In September 2008 through a notification the Ministry of Environment and Forests has categorised e-waste as hazardous waste. This has, however, evoked a feeling among the organised players that the government is making efforts to provide solution for the e-waste.
As per the 2008 rules, all companies recycling electronic waste have to register themselves with the Central Pollution Control Board (CPCB). As per the available information, Attero was the first firm to register with CPCB. It is also learnt that the board has decided to give registration to five more recycling units (two in Karnataka, one each in Maharashtra, Hyderabad and Gurgaon) that procure e-waste and have cathode ray tube cutting equipments along with segmenting the waste and dismantling them.
“We should have proper laws for disposal of e-waste and government should make sure that the laws are adhered to. Apart from that the government should also spread awareness about the problem. Also, the recyclers should be given incentives to stop this growing problem,” voiced Mr Gupta of Attero.
Calling for a separate legislation for e-waste handling, an environmentalist, who requested secrecy, said: “Unlike most hazardous wastes that are directly produced by factories, e-wastes are post consumer goods. So the way to recycle and treat it is different. It needs a separate law and a cradle to grave approach.”
While there is no doubt the government’s move to make registration of recycling companies mandatory with CPCB would go a long way in assuring that only organised players with enough infrastructure and processes in place get into the business, equal stress should be given to attract larger number of recyclers and provide them with the much needed support. Any regulatory action should also take into account the direct impacts recycling of e-waste can make to our economy.
“Direct impact (of recycling e-waste) to the country’s economy is twofold, namely, providing employment to people, and value addition to the input material. Recycling of e-waste produces metals which can be reused by other industries. Also the carbon footprint of the country is reduced if we recycle e-waste properly,” apprised Mr Gupta.
Amongst other things, what is worth mentioning is the environmentalists’ move to place the legal onus of take-back services (collection and recycling) directly on producer companies. It has however evoked mixed responses from the organised players.
“We feel that it has to be a collective effort of the producers, users, government and the recyclers. We all need to work together to get rid of this problem. But worldwide the producers have the responsibility of getting the e waste recycled,” noted Mr Gupta when asked to comment on the environmentalists’ move to place the legal onus of take-back services directly on producer companies.
“I do not see a great return back from consumers at this point of time in our country,” was Mr Soni’s response to our same question.
