LG Electronics and Samsung have filed lawsuits against the Indian government, challenging the “minimum recycling payment standard” clause in the E-Waste Management Amendment Regulations 2024. This regulation mandates electronics manufacturers to pay a minimum of ₹22 per kilogram for recycling consumer electronics and ₹34 per kilogram for smartphones.
Both companies claim the new rates sharply raise their recycling costs. Samsung says the fees are five to fifteen times higher than before. LG argues that the policy puts an unfair financial load on manufacturers while mostly benefiting recyclers. They also say the regulation ignores the informal sector, which still handles around 80% of India’s e-waste.
India produced 3.8 million metric tons of e-waste in 2024, making it the third-largest generator globally. But only 43% of that waste was formally recycled. The rest is processed by unregulated recyclers who often use harmful methods. To shift this balance, the government introduced the fixed payment system to draw more formal players into the market and push investment in better infrastructure.
Other companies, including Daikin, Havells, Voltas, and Blue Star, have also challenged the regulation in court, citing increased compliance costs and potential impacts on product pricing. The Delhi High Court is scheduled to hear these cases on Tuesday.
The outcome of these legal challenges could have significant implications for India’s e-waste management policies and the electronics industry’s operational costs.
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Source: Reuters, Redseer Strategy Consultants, via: Policy Wire
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