The Central Pollution Control Board (“CPCB”) has issued Guidelines for Environment Compensation (“EC”) to be levied for violation of Battery Waste Management Rules, 2022 (“Guidelines”). The Guidelines provide the details of Environmental Compensation to be levied on the violators in accordance with provisions of Battery Waste Management Rules, 2022 (“Principal Rules”).
Key Highlights:
A. The EC Guidelines are applicable to Producers, Recyclers and Refurbishers.
B. EC to be levied and penal action to be taken for non-compliance of Principal Rules are given as below along with nature of violation and the violator:
| Sl. No. | Rules | Provision Details | Violator | Violation | Environmental Compensation to be levied |
| 1 | 4(11) | Producer shall file annual returns in Form 3 regarding the Waste Battery collected and recycled or refurbished towards fulfilling obligations under Extended Producer Responsibility with the Central Pollution Control Board and concerned State Pollution Control Board in Form 3 by 30th June of the next financial year. The details of the registered recyclers from whom the Extended Producer Responsibility certificates have been procured shall also be provided. | Producer | Non-submission of Annual Returns | EC Regime 2 |
| 2 | 4(12) | It shall be the responsibility of a Producer to, – (i) adhere to prohibitions and labelling requirements as prescribed in Schedule I; | Producer | Not following labelling requirements | EC Regime 2 |
| 3 | 4(15) | Producer shall not deal with any other entity not having registration mandated under these rules. | Producer | Engaging with entities not registered on the portal | EC Regime 2 |
| 4 | 8(3) | Refurbishers shall furnish quarterly returns in Form 4 regarding the information on quantity of used Battery collected or received from various producers or entities, refurbished quantities, quantity of hazardous and/or other waste including solid waste or plastic waste generated after refurbishment and disposal of such quantity as per extant rules and the quarterly return shall be filed by the end of the month succeeding the end of the quarter. | Recycler / Refurbisher | Non-submission of quarterly returns | EC Regime 2 |
| 5 | 8(5) | Refurbisher shall not deal with any other entity not having registration mandated under these rules. | Recycler / Refurbisher | Engaging with entities not registered on the portal | EC Regime 2 |
| 6 | 9(3) | Recyclers shall furnish the quarterly returns in Form 4 regarding the information on quantity of Waste Battery collected or received from various producers or entity, recycled quantities, compliance of material wise recovery percentage as per recovery targets provided under subrule 4 of rule 10, quantity of hazardous and/or other waste including solid waste or plastic waste generated after recycling and of such quantity as per as per extant rules and the quarterly return shall be filed by the end of the month succeeding the end of the quarter. | Producer, Recycler, and Refurbisher | Non-submission of quarterly returns | EC Regime 2 |
| 7 | 9(5) | Recycler shall not deal with any other entity not having registration mandated under these rules. | Recycler / Refurbisher | Engaging with entities not registered on the portal | EC Regime 2 |
| 8 | 11(11), 11(12) | (11) Central Pollution Control Board shall carry out audit of data, including using information from Goods and Services Tax Network portal, by itself or a designated agency, of the registered entity under these rules.
(12) Central Pollution Control Board shall suspend and/or cancel the registration of Producer, and/or impose Environmental Compensation in case of violation of these rules by the registered entity. |
Producer, Recycler, and Refurbisher | Noncompliance found in third party audit | EC regime 2 and action as per E(P) Act, 1986 |
| 9 | 13(1)(i) | Environmental Compensation shall also be levied for the following activities based on polluter pays principle, –
i. entities carrying out activities without registration as mandated under these rules; |
Producer | False reporting / not registered on the Portal / improper handling of battery waste | (i) EC regime 2 and
(ii) Action as per provisions of section 15 of the Environment (Protection) Act, 1986 (iii) Action (increase in EC amount, cancellation of registration, etc.,) as deemed necessary by the Competent Authority, CPCB |
| 10 | 13(1)(ii) | Environmental Compensation shall also be levied for the following activities based on polluter pays principle, –
ii. providing false information / wilful concealment of material facts by the entities registered under these rules; |
Recycler | False reporting / not registered on the Portal / improper handling of battery waste | (i) EC regime 2 and
(ii) Action as per provisions of section 15 of the Environment (Protection) Act, 1986 (iii) Action (increase in EC amount, cancellation of registration, etc.,) as deemed necessary by the Competent Authority, CPCB |
| 11 | 13(1)(iii) | Environmental Compensation shall also be levied for the following activities based on polluter pays principle, –
iii. submission of forged/manipulated documents by the entities registered under these rules; |
Refurbisher | False reporting / not registered on the Portal / improper handling of battery waste | (i) EC regime 2 and
(ii) Action as per provisions of section 15 of the Environment (Protection) Act, 1986 (iii) Action (increase in EC amount, cancellation of registration, etc.,) as deemed necessary by the Competent Authority, CPCB |
| 12 | 13(1)(iv) | Environmental Compensation shall also be levied for the following activities based on polluter pays principle, –
iv. entities engaged in collection, segregation, and treatment in respect to not following sound handling of Waste Battery. |
Entities engaged in collection, segregation | False reporting / not registered on the Portal / improper handling of battery waste | (i) EC regime 2 and
(ii) Action as per provisions of section 15 of the Environment (Protection) Act, 1986 (iii) Action (increase in EC amount, cancellation of registration, etc.,) as deemed necessary by the Competent Authority, CPCB |
| 13 | 13(4) | Environmental Compensation shall be levied by Central Pollution Control Board on Producer operating with respect to non-fulfilment of their Extended Producer Responsibility targets, responsibilities and obligations set out in Schedule II of these rules. | Producer | Non-fulfilment of Targets | EC regime 1 |
| 14 | 13(5) | Environmental Compensation shall be levied by respective State Pollution Control Board on entities involved in refurbishment or recycling of Waste Battery as well as entities involved in collection, segregation and treatment, operating in their jurisdiction with respect to non-fulfilment of their responsibilities and obligations set out under these rules. | Recycler and Refurbisher | Non-fulfilment of the responsibilities laid out in the Rules | i. Based on EC regime 2
ii. Action (increase in EC amount, cancellation of registration, etc.,) as deemed necessary by the Competent Authority, CPCB iii. Penalty as per Section 15 of EPA 1986 |
C. EC to be levied is bifurcated into two regimes:
1. EC Regime 1- In this regime, EC will be levied to the Producers for non-fulfilment of metal wise EPR Targets. EC is calculated separately for Lead Acid Batteries and Lithium-ion and Other Batteries:
i. For Lead Acid Batteries, EC calculation per tonne is as per the cost component given below:
| Sl. No. | Cost Components | INR |
| 1 | Handling, Collection and Transportation | 3,000 per tonne |
| 2 | Processing | 15,000 per tonne |
| Total Cost (per Tonne) = EC Charges | 18,000 | |
| EC (per Kg) – | 18 | |
ii. For Lithium-ion and Other Batteries, Cost of Handling, Collection and Transportation of Waste Battery = Rs. 70,000 per tonne and Processing cost to recover key battery metals are as given below:
| Sl. No. | Metals | Average Processing Cost (INR/kg of metal) |
| 1 | Lithium (Li) | 2330 |
| 2 | Cobalt (Co) | 485 |
| 3 | Nickel (Ni) | 485 |
| 4 | Manganese (Mn) | 485 |
| 5 | Copper (Cu) | 200 |
| 6 | Aluminium (Al) | 50 |
| 7 | Iron (Fe) | 50 |
iii. EC and EPR cost to be levied for individual metals are as given below:
| Sl. No. | Metals | Total EC Cost (INR/kg of metal) = Average Cost of Collection Storage and Transportation + Average Processing Cost | EPR Cost (30% – 100% of EC Cost)
in INR |
| 1 | Lithium (Li) | 2400 | 720-2400 |
| 2 | Cobalt (Co) | 555 | 166-555 |
| 3 | Nickel (Ni) | 555 | 166-555 |
| 4 | Manganese (Mn) | 555 | 166-555 |
| 5 | Copper (Cu) | 270 | 81 – 270 |
| 6 | Aluminium (Al) | 120 | 36 – 120 |
| 7 | Iron (Fe) | 120 | 36 – 120 |
2. EC Regime 2- EC based on application fees, non-compliance other than shortfall in EPR targets, EC is calculated as given below:
i. For 1st default – EC equivalent to application fees as per SoP (middle slab) for registration of Producers/Recyclers/Refurbishers under Battery Waste Management Rules, 2022, i.e., Rs. 20,000 = Rs. 20,000/-.
ii. For 2nd default – Two times of first default i.e. Rs. 20,000 x 2 = Rs. 40,000/-.
iii. For 3rd default – Two times of second default i.e. Rs. 40,000 x 2 = Rs. 80,000/-. Further, EC cost in this regime will increase by 10% every year.
D. The EC Guidelines prescribes charges for Delay in EC deposition.
For a detailed information please refer to the hyperlink given below
Source: Central Pollution Control Board
