The Indian unit of US air conditioning giant Carrier recently sued the Indian government over electronic waste rules that have hiked the fees manufacturers must pay to recyclers.
India is the third-biggest generator of electronic waste behind China and the US, but the government says only 43% of the country's e-waste last year was recycled, reported Reuters.
In September, the government had set a floor price that electronics manufacturers must pay recyclers. This move was taken to formalize the sector and encourage investment in e-waste management. However, the manufacturers argue amounts to roughly three to four times higher than what they paid earlier.
In a 380-page court filing dated June 3, which has not been disclosed publicly, Carrier said recyclers were willing to continue their work at the older prices and the government should not interfere in private dealings between companies and recyclers.
"The burden of the benefit being given to the recyclers has been put on the producers, which is unfair and arbitrary," said submissions by Carrier Air conditioning & Refrigeration which were reviewed by Reuters.
The submissions added that the rules will impose a "huge financial burden" on the company.
Other Players Also Sue
Daikin, Samsung Electronics, LG Electronics, Voltas are among the recent manufacturers alarmed by new Indian government rules that require them to pay significantly more to recycle air conditioner, refrigerators, TVs and other appliances, court papers and lobbying letters show. They are set to be heard by the High Court of Delhi on July 8. All of the companies are seeking to have the rules quashed.
Hitachi and Havells also sued the government between November and March 2024 to quash the pricing rules, Reuters added.
The electronics giants are urging environment officials to abandon the approach, with four companies suing Prime Minister Narendra Modi’s administration in New Delhi over the measures they say will heighten compliance woes and unsettle businesses.
Air conditioner manufacturers are likely to be hit the hardest because their per-unit recycling cost has risen by a greater amount compared with makers of lighter gadgets like smartphones, according to Reuters.
New Rules Cause A Stir
The new rules mandate a minimum payment of ₹22 per kilogram to recycle consumer electronics. While such rates are still lower than levels in the US. where they are up to five times higher, according to research firm Redseer, Indian counterparts find it financially burdening.
According to Reuters, Carrier reported sales of $248 million in India last year, its highest level since at least the financial year ending March 2020. Its filing said it installed India's first-ever air conditioning system in Jaipur city in 1936.
