What Tyre Waste Management Rules Says

Overview

In our country, Tyre Waste Management Rule came in 2016 in India. Under that rule, it was said that any kind of old tyre, scrap tyre, pneumatic tyre, can be import by tyre recycler in India. The only recycler who had installed his own tyre pyrolysis plant was the one who imported the tyre scrap and extracted diesel, carbon, and wire from it and can sale it further. Tyre pyrolysis plants started coming up in India after 2016 and for importing such tyre scrap, the Ministry of Environment and Forest were responsible for issuing license. In 2024, the Tire Waste Management Role was revised again, those who has installed tire waste management plant, in which they are using reactors not authorized to import tire.

The biggest change under the new tire waste management rule is that only tire recyclers who have tires crumbs recycling plant will be allowed to import tire scrap. No other type of recycling is currently permitted to import tire scrap.

A tire recycler also received government approval for EPR work, and will be able to import only one-third of the metric tons of tires scrap as their metric ton capacity.

How a tyre recycler can import tyre scrap in India 

To set up a project of tyre recycling, the recycler should either have some space in the industrial area or he should have non-agricultural land. To set up the project of tyre rcycling, he will have to install the machinery like Executor, Steamer, Grinder and Air Pollution Monitoring Control Device. Only after getting approvals from the State Government and Central Pollution Board and Ministry of Environment, he will be declared as an authorized tyre recycler and after becoming a tyre recycler, he will have to take permission from Ministry of Environment Forest DGFT and DPIIT to import any type of tyre scrap in India. A tyre recycler can generate substantial revenue under the EPR scheme after becoming an authorised recycler in India by setting up a tyre recycling project. This means that any tyre manufacturer in India who imports new tyres will have to give a percentage of scrap tyre which either has imported or manufactured annually, as defined by the Central Pollution Control Board under the EPR scheme.

How EPR Tyre Credit Transfer works

Under the EPR scheme, for example, if an importer wants to recycle 20 metric tonnes of tyres waste, from a tyre recycler, then the importer will have to handover the tyre scrap to the tyre recycler. After the tyre scrap is recycled, the importer will take tyre EPR credit from the tyre recycler accordingly. The importer will also be responsible for collecting the EPR credits from the tyre recycler as per the metric ton quantity recycled.

This Recycler credit will not be transferred free of cost to the importer, there will be a fixed value defined in it as well, like today the rate is not fixed but recycling a tyre at the rate of ₹100 to ₹300 per kg. the tyre recycler is selling the tyre EPR credit on which he will raise the invoice to the importer for the same with 18% GST. As soon as the importer makes the payment for his recycling, after the calculation against this amount, the credit of 20 metric tonnes will be transferred by recycler to the importer or manufacturer. 

This scheme is called EPR Tyre under Tyre Waste Management Rule.

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