Samsung, and LG sue the government over increased pay-out for recyclers. The two electronic giants have sued the government to quash a policy which increases payouts to electronic-waste recyclers, according to agency reports, pointing to an escalation in the standoff between large foreign corporates and the government over its stance on waste management practices.
The two consumer electronics giants have joined other major companies in contesting the new rules citing business impact.
India is the third-biggest e-waste generator behind China and the US, but only around 40 per cent of the country’s e-waste is recycled with 80 per cent of the collection being made by informal scrap dealers.
Among the other companies that sued the government over the increase in payouts to e-waste collectors are
Daikin India, Havells, Blue Star and Voltas have already sued the Modi government over the proposed increase.
Samsung and LG had lobbied against a decision to fix a floor price payable to recyclers that is needed to get more formal players into the sector and boost investment in e-waste recycling.
The new rules mandate a minimum payment of Rs 22 per kilogram to recycle consumer electronics. Electronics companies say that will roughly triple their costs and benefit recyclers at their expense.
However, India’s recycling rates are still low compared with the US, where they are up to five times higher, and China, where they are 1.5 times higher.
