The Central Pollution Control Board (“CPCB”) has issued Revised Guidelines for Assessment of Environment Compensation (“EC”) to be levied for violation of Plastic Waste Management Rules, 2016 (“Revised Guidelines”). The Revised Guidelines details the Environmental Compensation regime to be levied on the violators in accordance with provisions of Plastic Waste Management Rules, 2016 (“Principal Rules”).
Key Highlights:
- 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:
| Rule | Provision Details | Violator | Violation | Environmental Compensation |
| 4(c) and 4(j) | (c) Carry bag made of virgin or recycled plastic, shall not be less than seventy- five microns in thickness with effect from the 30th September, 2021 and one hundred twenty (120) microns in thickness with effect from the 31st December, 2022;
(j) non-woven plastic carry bag shall not be less than 60 Gram Per Square Meter (GSM) |
Producer | Manufacturing bags not meeting specifications | i. Seizure of manufactured products and closure of unit.
ii. EC to be levied @ Rs.5000/- per ton of plastic bags manufactured from the date of inception of the unit or date of notification of Principal Rules whichever is later. For 2nd Violation: For 3rd Violation: EC @ Rs.20000/- per ton iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable. |
| 4(d) | Plastic sheet or like, which is not an integral part of multilayered packaging and cover made of plastic sheet used for packaging, wrapping the commodity shall not be less than fifty microns in thickness except as specified by the Central Government where the thickness of such plastic sheets impair the functionality of the product. | Producer | Manufacturing sheets not meeting specifications | i. Seizure of manufactured products and closure of unit.
ii. EC to be levied @ Rs.5000/- per ton of plastic bags manufactured from the date of inception of the unit or date of notification of Principal Rules whichever is later. For 2nd Violation: For 3rd Violation: EC @ Rs.20000/- per ton iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable. |
| 4(f) and 4(i) | (f)Sachets using plastic material shall not be used for storing, packing or selling gutkha, tobacco and pan masala;
(i) Plastic material, in any form including Vinyl Acetate – Maleic Acid – Vinyl Chloride Copolymer, shall not be used in any package for packaging gutkha, pan masala and tobacco in all forms. |
Producer | Using plastic material for packaging | i. Seizure of manufactured products and closure of unit.
ii. EC to be levied @ Rs.5000/- per ton of plastic bags manufactured from the date of inception of the unit or date of notification of Principal Rules whichever is later. For 2nd Violation: For 3rd Violation: EC @ Rs.20000/- per ton iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable. |
| 4(h) | The manufacturers or seller of compostable plastic and biodegradable plastics carry bags or commodities, or both shall obtain a certificate from the Central Pollution Control Board before marketing or selling; and | Manufacturer | Certificate not obtained | EC to be levied @ Rs.7900/- per ton of compostable and biodegradable plastic produced from the date of inception of the unit or date of notifications of Principal Rules whichever is later. |
| Not complying with conditions specified in Certificate issued by CPCB | i. Cancellation of CPCB Certificate and closure of Unit (In case the violation is found w.r.t raw material used/ product manufactured, EC to be levied as per violation of Rule 13(2).
ii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023as applicable. For 1st violation: iii. EC to be levied @ Rs.7900/- per ton of compostable and biodegradable plastic produced for the period of violation or from the date of issue of certificate. iv. For 2nd violation: EC to be levied @ Rs.15800/- per ton. For 3rd violation: |
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| 4(2) and 14(1) |
4(2) Manufacturer, import, stocking, distribution, sale and use of following single use plastic, including polystyrene and expanded polystyrene, commodities shall be prohibited: (a) ear buds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene [Thermocol] for decoration; (b) plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays, wrapping or packing films around sweet boxes, invitation cards, and cigarette packets, plastic or PVC banners less than 100 micron, stirrers. 14(1) Retailers or street vendors shall not sell or provide commodities to consumer in carry bags or plastic sheet or multilayered packaging, which are not manufactured and |
Producer | Production of prohibited SUP items |
i. EC to be levied @ Rs.5000/- per ton of plastic SUP items produced from the date of inception of the unit or July 01,2022 whichever is later. (EC to be levied @ Rs.10000/- per ton for 2nd violation and @ Rs.20000/- per ton for 3rd violation.) ii. Revocation of Consent |
| Stockist/distributors | Stocking and distribution of prohibited SUP items or Selling products in plastic bags which are not complying with provisions of PWM Rules |
i. Seizure of SUP products or bags/sheets.
ii. Cancellation of Commercial licence by concerned Local Authority. iii. Fine Rs.2000/- (I violation); Rs.5000/- (II violation);Rs. |
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| Importer | Import of prohibited SUP items | i. Seizure of imported SUP products.
ii. Cancellation of Registration Certificate by Custom Authorities. iii. Fine Rs.2000/- (I violation); Rs.5000/- (II violation); Rs.10,000/- (Third incident). |
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| Commercial establishments | Selling of prohibited SUP items or Selling products in plastic bags which are not complying with provisions of PWM Rules. |
i. Seizure of SUP products or bags/sheets.
ii. Cancellation of Commercial licence by concerned Local Authority. iii. Fine Rs.2000/- (I violation); Rs.5000/- (II violation); Rs.10,000/- (Third incident). |
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| 6(2)(g) and 7(c) | Ensuring that open burning of plastic waste does not take place | Person responsible for plastic burning Industries |
Burning plastic | i. Fine per incident of burning: Rs.5000/-.
ii. Fine per incident of bulk burning Rs.25000/-. iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas |
| 8(1)(a) | The waste generator shall take steps to minimize generation of plastic waste and segregate plastic waste at source | Waste generator | Waste not segregated | i. Waste generator: Spot fine – Rs.500/- (I violation); Rs.1000/- (II violation); Rs.2,000/- (Third violation and thereafter).
ii. Institutional Waste Generator: Spot fine Rs.5000/- (I violation); Rs. 10,000/- (II violation); Rs. 20,000/- (Third violation and thereafter). iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas |
| 8(1)(a) | The waste generator shall Not litter the plastic waste |
Waste generator | Waste littered | i. Waste generator: Spot fine – Rs.500/- (I violation); Rs.1000/- (II violation); Rs.2,000/- (Third violation and thereafter).
ii. Institutional Waste Generator: Spot fine Rs.5000/- (I violation); Rs. 10,000/- (II violation); Rs. 20,000/- (Third violation and thereafter). iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas |
| 10(6) | The interim test report shall be obtained from the Central Institute of Petrochemical Engineering and Technology or a laboratory recognized under the Laboratory Recognition Scheme, 2020, of the Bureau of Indian Standards or laboratories accredited for this purpose by the National Accreditation Board for Testing and Calibration Laboratories, and they shall certify the biodegradation of plastic is in line with IS 17899 T:2022. |
Manufacturer | Failure of final testing of the sample as per IS:17899 T:2022 |
To be determined after finalization of standards for biodegradable plastic by BIS. Until then, EC will be assessed on a case-bycase basis, similar to other plastic categories. |
| 11(1) | Marking or labelling. -(1) Each plastic carry bag “plastic packaging” and multi-layered packaging shall have the following information printed in English namely, – a. name, registration number of the producer or brand owner and thickness in case of carry bag and plastic packaging. b. name and registration number of the manufacturer. c. name and certificate number of producers [Rule 4(h)] in case of carry bags made from compostable plastic. d. the importer or producer or brand owner of imported carry bags or multi-layered packaging or plastic packaging, alone or along with the products shall adhere to clause (a) and (b). |
Manufacturer/Producer/Brand owner |
NA | i. Cancellation of Registration/CPCB certificate.
ii. Fine Rs.2000/- (I violation); Rs.5000/- (II violation); Rs. 10,000/- (Third incident). |
| 13(2) | Every producer or Importer or brand-owner shall, for the purpose of registration or for renewal of registration, make an application as per the guidelines specified in Schedule -II in Form-I to:
i. “The concerned State Pollution Control Board or Pollution Control Committee of the Union territory, if ii. “The Central Pollution Control Board, if operating in more than two States or Union Territories”. |
Producer, Brand Owner & Importers |
Submission of False information Non-compliance of conditions stipulated in Certificate |
EC to be levied as per EC provision for Schedule-II. |
| 13(3) | Every person recycling or processing waste or proposing to recycle or process plastic waste shall make an application to the State Pollution Control Board or the Pollution Control Committee, for grant of registration or renewal of registration for the recycling unit, in Form II as per the guidelines specified in Schedule –II |
Plastic Waste Processors | Registration not obtained Misreporting in quantity of plastic packaging placed on market and use of recycled plastics Not filling Annual Returns Submission of False information Non-compliance of conditions stipulated in Certificate |
EC to be levied as per EC provision for Schedule-II. |
| 13(4) and 4(e) | 13(4) Every manufacturer engaged in manufacturer of plastic to be used as raw material by the producer shall make an application to the State Pollution Control Board or the Pollution Control Committee of the Union territory concerned, for the grant of registration or for the renewal of registration, in Form III. |
Manufacturer | Unit operating without Registration |
i. Closure of unit.
ii. EC to be levied @ Rs.2500/- per ton of plastic raw material manufactured from the date of inception of the unit or date of notification of Principal Rules whichever is later (EC to be levied @Rs.5000/- per ton for 2nd violation and @ Rs.10000/- per ton for 3rd violation. iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable. |
| 4(e) The manufacturer shall not sell or provide or arrange plastic to be used as raw material to a producer, not having valid registration from the concerned State Pollution Control Boards or Pollution Control Committee; |
Manufacturer | Raw material sold to producers not having registration from SPCB |
i. Closure of unit.
ii. EC to be levied @ Rs.2500/- per ton of plastic raw material manufactured from the date of inception of the unit or date of notification of Principal Rules whichever is later (EC to be levied @Rs.5000/- per ton for 2nd violation and @ Rs.10000/- per ton for 3rd violation. iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable. |
- EC to be levied and penal action to be taken for non-compliance of Schedule- II of the Principal Rules are given as below along with nature of violation and the violator:
| Provisions | Provision Details | Violator | Violation | Environmental Compensation |
| 9.1 | Environmental Compensation shall be levied based upon polluter pays principle, with respect to non- fulfillment of Extended Producer Responsibility targets by Producers, Importers & Brand Owners | Producers, Importers & Brand Owners |
Shortfall in EPR Target in following types:
1. Recycling |
EC to be levied considering the category wise shortfall in EPR target, as per below: Cat I: Rs.2900 / T Cat II: Rs.5000 / T Cat III & IV: Rs.7900 / T For 2nd time default EC to be levied 2x times per ton in each category and for 3rd time default EC to be levied 3x times per ton in each category. EC can be carried forward up to 3 years as per EPR guidelines. |
| 10.6 | The Producers, Importers & Brand Owners shall file annual returns on the plastic packaging waste collected and processed towards fulfilling obligations under Extended Producer Responsibility with the Central Pollution Control Board or concerned State Pollution Control Board or Pollution Control Committee as per pro forma prescribed by Central Pollution Control Board by the 30th June of the next financial year | Producers, Importers & Brand Owners |
Annual returns not filed | i. Notice will be issued for 5 days after the last date of AR Filing; ii. Thereafter Rs. 5000/ – as EC shall be levied for next 5 days (Rs.10000/- for 2nd time default and Rs.20000/- for 3rd time default). iii. Rs. 10,000/- as EC shall be levied for next 10 days (Rs.20000/- for 2nd time default and Rs.40000/- for 3rd time default). |
| 11.2 | The Plastic waste processors shall submit annual returns after end of every financial year by 30th April of the next financial year on the quantity of plastic waste processed category-wise as per prescribed pro forma on the centralized portal developed by Central Pollution Control Board. | Plastic Waste Processors |
Annual returns not filed | i. Notice will be issued for 5 days after the last date of AR Filing; ii. Thereafter EC @ Rs. 200/ – per day for next 15 days and @ Rs. 400/- per day for the next 10 days shall be levied. Iii. Thereafter Annual Report shall be Auto filed on the a. <200 TPA- EC to be levied Rs. 5,000. b. 200-2000 TPA- EC to be levied Rs. 20,000. c. >2000 TPA- EC to be levied Rs. 50,000. |
| 12.4, 13.1 and 11.6 | 12.4: Central Pollution Control Board by itself or through a designated agency shall verify compliance of Producers, Importers & Brand-Owners through inspection and periodic audit, as deemed appropriate. Central Pollution Control Board as required, can also verify compliance of Plastic Waste Processors through inspection and periodic audit.
13.1: State Pollution Control Board or Pollution Control Committee by itself or through a designated agency shall verify compliance of Producers, Importers & Brand Owners through inspection and periodic audit, as deemed appropriate, of Producers, Importers & Brand-Owners as well as plastic waste processors in their jurisdiction as per the Plastic Waste 11.6: The pro forma for the certificate shall be developed by Central Pollution Control Board. In no case, the amount of plastic packaging waste recycled by the enterprise shall be more than installed capacity of the enterprise. |
Producers, Importers & Brand Owners |
Misreporting in quantity of plastic packaging placed on market and use of recycled plastics |
Increased EPR target and EC proportional to the Penalty up to Rs 1,00,000/- (For 1st default – EC of double of application fees, for 2nd time default -EC of four times the application fees and 3rd time default -EC of eight times the application fees). |
| Plastic Waste Processors |
Misreporting in quantity of plastic procured, EPR certificate generated | EC to be levied considering the category wise plastic weight misreported, as per below:
Cat I: Rs.2900 / T For 2nd time default EC to be levied 2x times per ton in each category and for 3rd time default EC to be levied 3x times per ton in each category. |
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| 10.1 and 11.4 | 10.1: The Producers, Importers & Brand-Owners shall have to register through the online centralized portal developed by Central Pollution Control Board. The certificate of registration shall be issued using the portal. 11.4: In case, at any stage it is found that the information provided by the plastic waste processor is false, the plastic waste processor shall be debarred by State Pollution Control Board, as per procedure laid down by Central Pollution Control Board , from operating under the Extended Producer Responsibility framework for a period of one year. |
Producers, Importers & Brand Owners Plastic Waste Processors |
Submission of False information | Cancellation of Registration and EC of double of Application fees proportionate Penalty up to Rs. 1,00,000/- (For 2nd time default EC of four times the application fees and 3rd time default EC of eight times the application fees). |
| Do not get registered on Centralized Portal |
EC to be levied considering plastic produced from the date of inception of the unit or date of notification of Principal Rules whichever is later.
EC will be levied as per below: Cat I: Rs.2900 / T |
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| 10.1 and 11.1 | 10.1: The Producers, Importers and Brand-Owners shall have to register through the online centralized portal developed by Central Pollution Control Board. The certificate of registration shall be issued using the portal.
11.1: All plastic waste processors shall have to register with concerned State Pollution Control Board or Pollution Control Committee in accordance with provision 13(3) of Plastic Waste Management Rules, 2016 on the centralized portal developed by Central Pollution Control Board. |
Producers, Importers & Brand Owners Plastic Waste Processors |
Non-compliance of conditions stipulated in Certificate |
Cancellation of Registration |
| 11.8 | The Plastic Waste Processors undertaking end-of-life disposal of plastic packaging waste viz. waste to energy, waste to oil, cement kilns (co processing) shall provide information on an annual basis as per prescribed pro forma, on the centralized portal developed by Central Pollution Control Board. These entities shall ensure the disposal of plastic packaging waste as per relevant rules, guidelines framed by regulatory bodies in an environmentally sound manner. |
Plastic Waste Processors and Producers |
Non-compliance of Environmental Norms |
EC to be levied based on “Report of the CPCB In-house Committee on Methodology for Assessing Environmental Compensation and Action Plan to Utilize the Fund” (AnnexureV). |
- Levying Minimum & Maximum EC for violation of PWM Rules according to minimum and maximum capacity (TPA) as given below:
| Rule | Violator | Min Capacity (TPA) | Max Capacity (TPA) | Minimum EC value (Rs. per annum) (At first time violation) |
Maximum EC value (Rs. per annum) (At third time violation) |
| 4(c), 4(d), 4(f), 4(i), 13(2),13(3) |
Producer, Brand Owner, Importer & Plastic waste Processors |
50 | 100000 | 0.05 | 200 |
| 13 (4) and 4(e) |
Manufacturer | 60000 | 4500000 | 2 crores | 500 crores |
- EC Charges and Financial Penalty for non-timely submission as given below:
| Sl No. | Amount Deposition time period | Environmental Compensation and Financial Penalty Amount |
| 1 | Within one month from the stipulated time period as directed by CPCB/SPCB/PCC | Original amount with interest @ 12% per annum for number of days delayed after the stipulated date of amount deposition. |
| 2 | After one month but within 03 months after the stipulated time period as directed by CPCB/SPCB/PCC | Original amount with interest @ 24% per annum for number of days delayed after one month of the stipulated date of amount deposition. |
| 3 | After 03 months | a. Closure of unit/facility
b. Seizure of trade documents c. Action as per Section 15 (1) of EPA. Action, as applicable, to be taken by Local bodies for Clause 8(1)(a), 8(1)(b) and 14(1) and for the remaining clauses action has to be taken by the concerned SPCB/ PCC/ CPCB |
For detailed information please refer to the hyperlink below.
Source: Central Pollution Control Board
